Calculators

Freelancer Tax Set-Aside Calculator

Freelancer tax set-aside calculator: split each payment into a tax reserve and a buffer, e.g. 25% and 10% of USD 3,000, and see what is left to spend.

Your numbers

Answer

Set aside 1,050 USD of 3,000 USD: 750 USD for tax at 25% and 300 USD for other costs. 1,950 USD is left to spend.

Total to set aside
1,050 USD
Tax to set aside
750 USD
Other set-aside
300 USD
Take-home after reserves
1,950 USD
Effective set-aside rate
35%
Where the income goes
  • Tax to set aside750 USD25%
  • Other set-aside300 USD10%
  • Take-home after reserves1,950 USD65%

A dash means a ratio cannot be calculated with zero income, spending or transactions. Fixed charges may still apply; this is not a zero-percent fee.

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Next steps with this result

Compare the cards and services this result applies to:

Tax reserve for freelancersHow to size and hold a reserve.Freelancer payment stackReceive and route client money.Freelancer payment feesEstimate payout and FX costs first.

Decision framework

This freelancer tax set-aside calculator turns the percentages you reserve for tax and other costs into amounts and shows what is left of each payment.

Enter the income amount, your estimated tax rate and an optional second set-aside percentage. Both percentages apply to the same full income amount: a 10% reserve is 10% of the whole income. The calculator adds both reserves and subtracts them from income. If the reserves are larger than the income, take-home shows zero and the excess shows as extra money needed. You choose the rate and the income base; the calculator does the arithmetic.

Example: two reserves on $3,000

A 25% tax reserve on $3,000 is $750. A separate 10% reserve on the same $3,000 is $300. Together you set aside $1,050, and $1,950 is left. If $300 has already been withheld for the same tax, account for it separately so you do not reserve the same tax twice.

Set the base before you apply a percentage

  • Decide whether your base is the payment received, revenue or profit.
  • Account for amounts already withheld, prepaid or set aside.
  • Get your actual tax amounts and deadlines from the tax authority or a qualified adviser.
  • Keep a schedule of reserves by obligation, because different taxes can fall due on different dates.

FAQ

Which income figure should I enter?

Enter the base your reserve plan uses: payments received, revenue or profit. Your tax rules decide which expenses are deductible and whether VAT sits outside that base.

Is take-home after reserves my final income?

It is the income left after these two reserves. Payment fees and business costs also come out of it; the freelancer payment fee calculator covers the fees.

What if my two percentages add up to more than 100%?

Take-home shows zero, and the excess shows as extra money needed for the reserves. Check whether the two reserves cover the same obligation or use different bases.

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