Freelance & gig taxes

Gig Economy Tax Set-Aside Calculator

Freelance and gig income has no automatic tax withholding. Estimate self-employment tax and income tax so you know how much to set aside from every payment.

—Total to set aside
—Est. self-employment tax
—Est. income tax
—% of gross income to set aside
—Estimated take-home
This is a simplified estimate for planning purposes, not tax advice. Actual taxes depend on your full tax situation, deductions and local rules — consult a tax professional for exact figures.

Calculated on your device. Nothing is uploaded or stored on a server.

How to use the gig economy tax set-aside calculator

Enter your gross gig or freelance income for the period, any deductible business expenses, and your self-employment and estimated income tax rates (the U.S. self-employment tax rate defaults to 15.3%). The calculator estimates how much of that income you should set aside for taxes.

Why gig income needs its own tax plan

Traditional employees have income and payroll taxes withheld automatically from every paycheck. Gig and freelance income usually arrives gross, with nothing withheld, so it's easy to spend money that's actually owed to tax authorities. A common approach is to estimate your net taxable income (income minus deductible expenses) and set aside a percentage for self-employment tax and income tax as soon as you're paid.

Self-employment tax

This estimate applies the self-employment tax rate to 92.35% of your net earnings, matching how the U.S. self-employment tax is generally calculated on net profit.

Set money aside immediately

Many freelancers transfer their estimated tax percentage to a separate savings account the moment they're paid, so it's never available to accidentally spend.

Gig economy tax set-aside calculator FAQ

Common questions, answered.

How is the self-employment tax estimated?

Net earnings (income minus deductible expenses) are multiplied by 92.35%, then by your self-employment tax rate, mirroring the standard U.S. approach where only 92.35% of net self-employment earnings are subject to that tax.

Is this exact tax advice?

No. This is a simplified planning estimate. Real tax liability depends on your total income, filing status, deductions, credits and local tax rules. Consult a tax professional or accountant for an exact number.

What income tax rate should I use?

Use your estimated marginal federal (plus state, if applicable) income tax rate on this additional income. If you're unsure, a common conservative planning rate is 20–25%, but your actual bracket may differ.

Should I set aside money from every payment or just periodically?

Setting aside your estimated percentage from every payment, right when it arrives, is the safest habit — it avoids the temptation to spend money you'll owe later at tax time.

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