The short answer
UK: set aside about 15–30% of your profit, depending on how much you earn.
"Profit" means what you invoice minus business expenses. The more you earn, the higher the percentage, because tax rates rise with income.
United States: % of profit to save (2026)
Federal self-employment tax and income tax plus state income tax, for a single filer with no other income. Texas has no state income tax; California and New York are high-tax states.
| Net profit | Texas | California | New York |
|---|---|---|---|
| $30,000 | 17% | 18% | 20% |
| $50,000 | 19% | 21% | 23% |
| $75,000 | 21% | 24% | 25% |
| $100,000 | 22% | 27% | 27% |
| $150,000 | 25% | 31% | 30% |
For example, on $60,000 of profit in Texas you'd owe about $12,037 for the year, so you'd set aside $1,003 a month and pay $3,009 each quarter. Get the exact figure for your state with the 1099 tax calculator.
United Kingdom: what to save (2026/27)
Income tax and Class 4 National Insurance for a sole trader in England, Wales or Northern Ireland with no other income.
| Profit | Tax + NI | % of profit | Save per month |
|---|---|---|---|
| £20,000 | £1,932 | 10% | £161 |
| £30,000 | £4,532 | 15% | £378 |
| £40,000 | £7,132 | 18% | £594 |
| £50,000 | £9,732 | 19% | £811 |
| £75,000 | £20,189 | 27% | £1,682 |
| £100,000 | £30,689 | 31% | £2,557 |
Remember payments on account: in your second year, HMRC may ask for this year's bill plus half of next year's in January. See the full take-home table or the Scottish calculator.
A simple system that works
- Open a separate savings account just for tax.
- Every time a client pays, move your percentage into it straight away, before you spend anything.
- Pay your tax from that account (quarterly in the US, January and July in the UK).
- Check your percentage every few months with a calculator, because it changes as your income grows.
- Anything left over after you file is a bonus, or a head start on next year.
Ways to need less
Track every business expense: in the US, each $1,000 of deductions saves around $200–$300 for a typical freelancer. See the freelance tax deductions list. Retirement contributions (SEP-IRA in the US, a personal pension in the UK) also reduce your bill.
Frequently asked questions
What percentage should a freelancer save for taxes?
In the US, 20–30% of profit for most freelancers, more at high incomes or in high-tax states. In the UK, about 15–30% depending on profit.
How much should I save for taxes on $50,000 1099 income?
About 19% in a state with no income tax like Texas and about 21% in California, for a single filer in 2026.
How much tax do I need to save self-employed UK?
With £30,000 of profit, about £4,532 (15%) for income tax and NI in 2026/27, or £378 a month.
Is it profit or revenue?
Profit: what you earn minus business expenses. If you set aside a percentage of every payment received, use a slightly lower percentage to account for expenses.
This guide is general information, not tax, legal or financial advice. Rules change and depend on your situation, so check official sources or a qualified professional.