How much should I set aside for taxes?
When you work for yourself, nobody takes taxes out for you. Get a simple starting share to move into a tax account.
Completely free. No sign-up or bank login needed.
Money in, minus business costs. Use an average month.
$
Not sure? Many people fall in the 10–22% range. Last year’s tax return can help.
Some states have no income tax. Use 0% if that’s you.
Add your monthly profit above to see your starting share.
Why a separate tax account helps
Mike Michalowicz’s Profit First system gives tax money its own account so it never looks like spending money. The IRS generally expects self-employed people to pay estimated taxes during the year, not just in April.
Profit First made simpleHow to pay yourself as a business ownerIRS: Estimated taxesIRS: Self-employment tax
See my next money step—freeCompletely free. No card, no trial, no paid plan. Education, not tax advice.