Tax Set-Aside Calculator

When you work for yourself, nobody takes tax out of your pay for you. A simple habit helps: every time a client pays, move a set share into a separate savings pot for tax. Put in a payment and the rate you have agreed with your tax professional, and this tool splits it for you. It does not know the tax rules where you live.

Payment received

The amount that landed in your account.

Business costs to take off first

Optional. Only if you set aside on profit.

Your estimated tax rate

Income tax plus any self-employment contributions. Ask a tax professional.

Safety buffer

% extra

A few extra points so you are never short.

Payments like this per month

Move to your tax pot

You can use about $0 of this payment.

0%of the payment set aside

$0to the tax pot each month

$0in the pot after a year

A more honest range

If you are not sure of your rate, see what 5 points lower or higher would mean. Saving too much is easier to fix than saving too little.

Scenario	Rate + buffer	Set aside

How it works

Base = payment − business costs (or the whole payment if you leave costs at 0)
Set aside = base × (tax rate + buffer)
You can use = payment − set aside
Per month = set aside × payments per month

Keep the tax pot in a separate account you do not spend from, and write down each transfer next to the invoice it came from.

Three things this tool can't see

Your tax bands. Many countries use bands, allowances and credits, so your real rate may be lower or higher.
Sales tax or VAT. If you charge sales tax or VAT, that money belongs to the tax office. Keep it apart as well.
Deadlines. Some places ask for payments in advance during the year. Check your dates with a tax professional.

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STEP 2

The Small Business Planner Kit

A one-page business plan, pricing sheets, a client and order system and simple income and expense records.

See the full kit

This tool is for planning only and is not financial, tax, legal or investment advice. Talk to a qualified professional about your own situation. We make no income or savings claims. Some links on this site may earn us a commission. Read our disclosure.