How Much Should I Set Aside for Taxes?
Get one number: the share of every payout to move into a tax savings account, based on your income and expenses.
| Estimated federal tax on this income | |
| Per month | |
| Per week | |
| Your top income tax bracket |
If a state income tax applies to you, add roughly your state’s rate on top of this.
Typical set-aside rates for 2026
Single filer, business expenses at 15% of income, federal taxes only.
| Yearly 1099 income | No other job | With a $60,000 W-2 job |
| $20,000 | 12% | 23% |
| $40,000 | 15% | 24% |
| $60,000 | 17% | 25% |
| $80,000 | 17% | 25% |
| $100,000 | 18% | 25% |
| $150,000 | 20% | 26% |
How this is calculated
We estimate your federal self-employment tax and income tax on your side income, including the standard deduction, half of your self-employment tax and the QBI deduction. Then we divide that tax by your gross income to get a single percentage.
If you have a W-2 job, your employer already withholds tax on your wages, so we count only the extra tax the side income adds. That’s why the rate is higher with a job: your side income lands in a higher bracket.
Figures for tax year 2026. Full method and sources on our methodology page.
Common questions
Is 30% the right amount to set aside for 1099 taxes?
30% is a common rule of thumb, but it’s often too high for lower earners and too low for high earners with a W-2 job. Your real rate depends on your profit, filing status and other income. The calculator above gives your figure.
Should I set aside a percentage of gross or profit?
This calculator gives a percentage of gross payouts, because that’s the number you see in your bank account. Your expenses are already taken into account.
Where should I keep the money?
A separate high-yield savings account works well. You earn a little interest and aren’t tempted to spend it. Move the money the same day each payout lands.
Does this include state taxes?
No, federal only. If your state has an income tax, add roughly your state’s rate on top.
Last updated September 28, 2026. This calculator gives an estimate for federal taxes only and isn’t tax advice. State and local taxes aren’t included.