Freelance Tax Set-Aside Calculator

Every time a client pays you, part of it belongs to the tax office. Move it before you spend it.

How much should freelancers set aside for taxes?

There's no single number: it depends on your country, income, deductions and business structure. Many freelancers in the US, UK, Canada and Australia set aside 25–35% of each payment as a safe planning figure, then adjust once their accountant has calculated their real rate.

The two-account system

Have every client payment land in one account. Immediately move your set-aside percentage to a separate tax account. What's left is what you can actually spend.

Frequently asked questions

Should I set aside tax from the full payment or from profit?

Setting aside from the full payment is simpler and safer. If you have large business expenses, you can lower the percentage once you know your real taxable profit.

What happens if I set aside too much?

You keep the excess after your tax bill is settled. Over-saving is far less painful than a tax bill you can't pay.

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