Free tools

How much should I set aside for taxes?

Your profit and where you live. The share of every dollar to put away.

Where is your business?
Your profit is
Set aside20%of every dollar of profit: about $1,003 a month, $12,037 for 2026.
Self-employment tax (Social Security and Medicare)$8,478
Federal income tax$3,559
State income tax$0
Total for 2026$12,037

For a sole proprietor or single-member LLC, single, with no other income. On top of this, sales tax you collect (6.25% state rate in TX, plus local tax) isn't yours: keep all of it aside for the state. An estimate, not tax advice.

How much should I set aside for taxes if I'm self-employed?

Often 25% to 35% of your profit, but it depends on how much you make and where you live. The calculator works it out for your state or province with this year's tax figures.

Is it a percentage of sales or of profit?

Of profit: what comes in from customers less your business costs. Sales tax or GST/HST you collect is separate, and all of it belongs to the government.

Where should I keep the money?

A separate savings account you don't touch. Move the share across every time you get paid, so it's there when the tax is due.

When do I pay it?

In the US, four estimated payments: April 15, June 15, September 15 and January 15. In Canada, instalments on March 15, June 15, September 15 and December 15 once you owe more than $3,000, and the rest by April 30.

More detail: the US quarterly estimated tax calculator and the Canadian self-employed tax calculator.

Know what to set aside, every month.

SumSwift works out your tax set-aside from your real books the day you upload your statements, and tells you what's due when.

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