# How much should I set aside for taxes if I am self-employed?

There is no single right percentage. Self-employment tax alone is 15.3% of 92.35% of your profit, about 14.1% of profit, and federal income tax comes on top at a rate that depends on your bracket, deductions and other income, plus any state tax. ProfitDrawer's free self-employed tax calculator lets you choose a share of profit, shows the self-employment tax part separately and shows what is left for income tax.

A practical way to pick your number:

1. **Estimate your profit**, meaning income minus business expenses, not total sales.
2. **Work out the self-employment tax part:** profit x 92.35% x 15.3%. On a $40,000 profit that is $5,651.82 (example numbers only).
3. **Add income tax.** Your rate depends on your filing status, tax bracket, deductions and any wages from a job. Last year's return, or a tax professional, gives the best starting point.
4. **Add state income tax** if your state has one.
5. **Enter a share in the calculator** and check that the amount left for income tax looks realistic.

Then move that share into a separate savings account each time a client pays, and review it every quarter. If you expect to owe $1,000 or more, pay it as quarterly estimated tax. Paying at least 100% of last year's tax, or 90% of this year's, generally avoids the underpayment penalty.

The 12.4% Social Security part stops above a yearly earnings limit, and a 0.9% additional Medicare tax can apply at higher incomes. General information, not tax advice.

- Source: [Self-Employed Tax Calculator: How Much to Set Aside (ProfitDrawer)](https://profitdrawer.com/tools/self-employed-tax-calculator.html)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Small business taxes
- Canonical: https://profitdrawer.com/answers/how-much-should-i-set-aside-for-taxes-if-i-am-self-employed.html
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