"Set aside 30% for taxes" is the number that circulates among freelancers and 1099 contractors, but it's a rough average, not a calculation — and depending on how much is actually earned, the real figure can land meaningfully above or below it.
How much should I set aside for taxes as a freelancer, the real math
On $60,000 in net self-employment profit with no other income, the actual combined federal bill (self-employment tax plus federal income tax) comes to $12,989.07 — 21.6% of profit, not 30%. On $30,000 net profit, it's $5,416.93 — about 18.1%. The percentage rises as profit rises, because federal income tax is progressive while self-employment tax is close to flat, so a single fixed rule of thumb can't track both at once.
Self employment tax rate 2026, what's actually in the 15.3%
Self-employment tax applies to 92.35% of net profit: 12.4% for Social Security (up to the 2026 wage base of $184,500, combined with any W-2 wages) and 2.9% for Medicare, which has no cap and adds another 0.9% above $200,000 (single) or $250,000 (married). Half of this is deductible from taxable income, which is why the two totals above aren't a simple 15.3% + income tax bracket.
1099 quarterly tax calculator, the four dates that actually matter
The IRS doesn't just want the total once a year — it expects it in four installments. For the 2026 tax year, quarterly payments are due April 15, June 15, September 15, and January 15, 2027 (shifting to the next business day if any date lands on a weekend or holiday). On $60,000 net profit, that's $3,247.27 due each quarter, not one lump sum in April.
