Tax set-aside calculator
The scariest question in self-employment is "how much of this money is actually mine?" This gives you a working answer: a percentage to move into a separate account every time a client pays, so the tax bill turns up already funded. It's a rough guide, not tax advice, and nothing you type is saved or sent anywhere.
Every time you get paid, move
28% to a separate account
- Set aside per month
- $1,400.00
- Yours to spend per month
- $3,600.00
- Tax pot after a year
- $16,800.00
The trick is doing it the day the money lands, not the week the bill does. If the pot ends up bigger than the bill, that's a bonus, not a problem.
Track what every client owes you for freeCommon questions
- How much should I set aside for tax when self-employed?
- A common rule of thumb is 25% to 30% of your profit, moved to a separate account every time a client pays you. The right number depends on your country, your profit level and your deductions, so treat the percentage as a starting point and confirm it with an accountant after your first year.
- Should I open a separate account for tax money?
- Yes. A second free bank account is the single best tax habit for a solo business. Money you can see gets spent. Move the percentage the day a payment lands, and the tax bill becomes a transfer instead of a crisis.
- What happens if I set aside too much?
- Nothing bad. After the bill is paid, whatever is left in the pot is yours: an instant emergency fund, a van repair buffer, or a January that doesn't hurt. Aim high on purpose.