How much should a freelancer set aside for taxes?
When you're employed, tax disappears from your paycheck before you see it. When you freelance, every payment lands gross — and it's on you to keep enough back so tax season isn't a disaster. This calculator shows how much to park, broken down per month, plus what's genuinely yours to spend.
Choosing a percentage
This varies enormously by country, income level, and whether you owe self-employment or social-contribution taxes on top of income tax. As a rough planning starting point, many freelancers set aside somewhere in the 25–35% range — but treat that as a placeholder, not a fact about your situation.
Important: This is an estimate, not tax advice. Your real rate depends on your country, tax bracket, deductions, and local rules. Confirm with a qualified local accountant, and check whether you're required to make quarterly or estimated payments.
Common mistakes
- Spending the gross amount and scrambling at tax time.
- Forgetting self-employment / national insurance contributions on top of income tax.
- Keeping tax money in your main account where it "feels" spendable.
- Missing quarterly deadlines and getting hit with penalties.
Quick questions
Where should I keep it? In a separate savings account you don't touch. Out of sight, out of temptation.
When do freelancers pay tax? Many countries require periodic estimated payments during the year, not one lump sum. Check your local rules.