Question 1

How much should a freelancer set aside for taxes?

Accepted Answer

The honest answer is "your effective tax rate, not a folk number." Common advice says 25–30%, but the right figure depends on your income level and where you live: a freelancer netting $30k in Alberta needs far less than one netting $150k in California. This calculator computes your estimated self-employment tax (or CPP), federal, and state/provincial income tax, then converts the total into a percentage of income.

Question 2

Should I set aside a percentage of revenue or profit?

Accepted Answer

The percentage this tool gives you applies to your net income (profit). The simplest workflow, though, is to apply it to every client payment as it arrives — that slightly over-saves if you have significant expenses, which is the safe direction to err in.

Question 3

Where should the money go?

Accepted Answer

A separate high-interest savings account you never spend from — often called a tax account. Transfer the percentage the moment a payment lands, before the money feels like yours. When a quarterly payment is due, it comes out of this account.

Question 4

Does this include self-employment tax and CPP?

Accepted Answer

Yes. For the US it includes the full 15.3% self-employment tax with the 2026 Social Security wage base cap ($184,500) and the half-SE-tax deduction. For Canada it includes both shares of CPP (11.9%) and CPP2 (8%) with 2026 ceilings, plus estimated federal and provincial income tax.

Question 5

Is this exact?

Accepted Answer

No — it is a single-filer estimate that ignores credits, deductions beyond the standard ones, and other income. Use it to pick a safe savings rate, then true up with real numbers at filing time. When in doubt, round your percentage up.

Tax Set-Aside Calculator

How much should a freelancer set aside for taxes?

Should I set aside a percentage of revenue or profit?

Where should the money go?

Does this include self-employment tax and CPP?

Is this exact?