How much should you set aside for tax?
Estimate the tax and social contributions on your freelance profit, and how much to set aside each quarter.
- Per quarter
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- Share of your profit
- Self-employment tax
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- Social Security part
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- Medicare part
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- Deductible half of SE tax
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- Estimated income tax
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- Income tax
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- National Insurance (Class 4)
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- Medicare levy
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- Federal income tax
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- Provincial income tax
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- CPP contributions
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US only. Excludes the 0.9% Additional Medicare Tax above $200,000 for single filers, and state rules. Amounts are in US dollars, whatever currency you pick above.
England, Wales and Northern Ireland rates for 2026/27. Excludes Scottish rates, student loans, dividends, VAT and payments on account. Amounts are in pounds sterling.
2026 federal rates plus self-employed CPP, with the provincial rate you enter. Excludes EI, GST/HST, Quebec's own system and credits other than the basic personal amount. Amounts are in Canadian dollars.
2026-27 resident rates plus the 2% Medicare levy. Excludes offsets such as LITO, HELP repayments, the Medicare levy surcharge and GST. Amounts are in Australian dollars.
How self-employment tax works
How this estimate works
SE tax is 15.3% of 92.35% of your net profit: 12.4% Social Security (only up to the wage base) plus 2.9% Medicare (no cap). Half of the SE tax is deductible when working out income tax, and no SE tax is owed if net earnings are under $400.
Income tax uses the 2026/27 bands: a £12,570 personal allowance (reduced above £100,000), 20% up to £50,270, 40% up to £125,140 and 45% above. Class 4 National Insurance adds 6% on profits between £12,570 and £50,270 and 2% above.
Federal tax uses the 2026 brackets (14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, 33% above) less the basic personal amount credit. Self-employed CPP is 11.9% of earnings between $3,500 and $74,600 plus 8% up to $85,000, and half of it is deducted from income. Provincial tax uses the rate you enter.
Income tax uses the 2026-27 resident rates: nothing up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy on taxable income.
Does this include income tax?
Only as a rough figure. It applies the rate you enter to profit after deducting half the SE tax. It ignores the standard deduction, credits and state rules, so use it as a set-aside guide, not a return.
Is this tax advice?
No. It is an estimate for planning. An accountant can tell you what you really owe and when estimated payments are due.