Tax Set-Aside Estimator

Where the presets come from

Each preset is a prudent flat set-aside for a mid-income sole trader — enough to cover income tax plus self-employment contributions without fine-tuning:

• United States — 30%: 30% covers federal income tax plus the 15.3% self-employment tax for most mid-income freelancers; state tax varies.
• United Kingdom — 25%: 25% covers income tax and Class 4 National Insurance for most sole traders in the basic-rate band; higher-rate earners should set aside more.
• Canada — 25%: 25% covers federal + provincial income tax and CPP contributions for a mid-income sole proprietor in most provinces.
• Australia — 30%: 30% covers income tax plus the Medicare levy around the median full-time wage; remember super is your job now, not an employer top-up.
• Ireland — 30%: 30% covers income tax, USC, and Class S PRSI for a mid-income sole trader; incomes above ~€42,000 hit the 40% band quickly.

These are starting points, not tax advice: your effective rate depends on income level, deductions, and (in federal countries) your state or province. High earners should round up; freelancers with heavy deductible costs can often round down. When in doubt, set aside more — an over-funded tax account is a bonus in April, an under-funded one is a debt.

Set-aside vs. rate

If the percentage feels painful, the problem is usually the rate, not the tax. Our rate calculator builds the tax buffer into what you charge, so the set-aside comes out of the client’s number rather than your salary.