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Federal set-aside by profit (single, 2026)
| Profit | Federal tax | Set aside | Per quarter |
|---|---|---|---|
| $20,000 | $3,025 | 15.1% | $756 |
| $30,000 | $5,181 | 17.3% | $1,295 |
| $40,000 | $7,427 | 18.6% | $1,857 |
| $60,000 | $12,037 | 20.1% | $3,009 |
| $80,000 | $16,647 | 20.8% | $4,162 |
| $100,000 | $22,365 | 22.4% | $5,591 |
| $150,000 | $37,608 | 25.1% | $9,402 |
| $200,000 | $53,431 | 26.7% | $13,358 |
Add your state rate on top. Many freelancers move a fixed percentage of every payment into a separate tax account.
Why the percentage rises
Self-employment tax is a flat 15.3% (on 92.35% of profit) up to the Social Security wage base, and income tax is progressive, so the combined share grows with income.
Federal estimates using 2026 IRS figures and the standard deduction. They leave out credits, state tax and other deductions, so treat them as a planning number, not a tax return.
Sources and assumptions
- IRS Revenue Procedure 2025-32 (2026 brackets, standard deduction, capital-gain thresholds, QBI thresholds)
- SSA: 2026 Social Security wage base $184,500
Related
Frequently asked questions
What percentage should I save for 1099 taxes?
Roughly 15%–30% of profit for federal tax depending on income, plus your state rate. The table gives 2026 figures by income.
Do I pay tax on 1099 income before expenses?
No. Tax is on profit: income minus deductible business expenses.