Free Tool · Tax Management
1099 Tax Set-Aside Calculator
Don't get surprised at tax time. Find the exact percentage of every gig payment you should move to savings — covering self-employment tax, federal income tax, and your state.
Gross gig earnings minus deductible expenses (mileage, phone, supplies). Not sure? Use your gross and treat the result as a ceiling.
0 for TX, FL, WA, etc.
Why a set-aside percentage beats a flat rule of thumb
“Save 30% for taxes” is the advice you'll hear most — but it's often wrong in both directions. A driver netting $25,000 single doesn't owe anywhere near 30%; someone netting $90,000 in a high-tax state may owe more. Saving too much starves your cash flow; saving too little means a painful April. Your real number comes from your income and filing status.
How the set-aside is calculated
- Self-employment tax: 15.3% on 92.35% of your net income (Social Security + Medicare).
- Federal income tax: your bracket applied to net income after the standard deduction and the deductible half of SE tax.
- State income tax: your state's rate, if any, added on top.
Add those up, divide by your income, and you get the percentage to move to savings from every payout.
Make it a habit
The workers who never panic at tax time do one thing: every time a platform pays them, they immediately transfer their set-aside percentage into a separate savings account. When quarterly taxes are due, the money is already there. Pair this with the Quarterly Tax Estimator to schedule the actual payments, and the Mileage Deduction Calculator to lower the net income this is based on.
Frequently Asked Questions
How much should I set aside for taxes as a 1099 gig worker?
A common rule of thumb is 25–30% of your net income, but the right number depends on your total earnings and filing status. This calculator gives you a personalized set-aside percentage by combining your 15.3% self-employment tax with your federal income tax bracket — so you're not guessing. Most gig workers earning $20k–$60k net land between 20% and 28%.
Should I set aside taxes from gross or net income?
Set aside based on your net income — gross earnings minus deductible business expenses like mileage, phone, and supplies. The mileage deduction alone ($0.70/mile in 2025) often removes a large chunk of taxable income, which lowers how much you need to save. Track expenses all year so your set-aside is based on real net, not inflated gross.
What does the set-aside percentage actually cover?
It covers two federal taxes: self-employment tax (15.3% on 92.35% of net earnings, for Social Security and Medicare) and federal income tax (based on your bracket after the standard deduction and the deductible half of SE tax). If your state has income tax, add your state's rate on top — this tool lets you enter it.
Where should I keep the money I set aside?
Keep it in a separate high-yield savings account so it's not mixed with spending money and earns interest until you pay. Transfer your set-aside percentage every time you get paid by a platform. When quarterly estimated taxes are due (April, June, September, January), pay from that account.
Is setting aside money the same as paying quarterly taxes?
No — setting aside is the savings habit; quarterly estimated payments are when you actually send the IRS money (four times a year). Set-aside ensures you have the cash ready so quarterly payments don't hurt. Use this tool to build the habit, then use a quarterly estimator to schedule the actual payments.
Does this set-aside estimate include state taxes?
Federal SE tax and federal income tax are calculated automatically. State income tax varies widely (0% in states like Texas and Florida, up to ~13% in California), so you enter your state's approximate rate and the tool folds it into your total set-aside percentage.
Never be surprised by a tax bill again
UnifyOne tracks your earnings across every gig platform, keeps your set-aside number accurate in real time, and reminds you before each quarterly deadline. Free to start.
Start tracking for free →