How Much Should I Set Aside for Taxes? Gig Worker Calculator

If you drive for Uber, Lyft, DoorDash, or pick up any 1099 work, one question trips up almost everyone in their first year: how much should I set aside for taxes? Nobody withholds for you anymore — the full amount lands in your account, and come April the IRS wants its share back. A good rule of thumb is to park 25–30% of what you earn for taxes, but your real number depends on your expenses, your state, and how much you make. The calculator below splits every dollar you earn into four buckets — business expenses, taxes, a savings buffer, and what you actually keep — so you know exactly what to move aside the day you get paid.

How much of your gig income should you set aside?

The money the app drops in your account isn’t all yours. Enter what you earn and this splits every dollar into the buckets that actually matter — taxes to stash, business costs, a buffer for slow weeks, and what you truly keep.

$
What the apps or clients pay you, before any costs or taxes.
%
Gas, vehicle wear, supplies, phone — as a share of gross. Drivers often run 10–20%.
%
Rough federal + state income tax, on top of self-employment tax. 10–15% is common at modest income.
%
A cushion for slow weeks, repairs, and gaps between gigs. Set to 0 to skip it.
Set aside for taxes
0% of every dollar
 
Expenses Taxes Buffer Yours to keep

Where every $1,000 per week goes

Business expenses$0
Taxes to set aside$0
· Self-employment tax (15.3%)$0
· Income tax (estimate)$0
Savings buffer$0
Yours to keep$0
Open a separate account for the tax bucket. The single biggest reason gig workers get wrecked in April is spending money that was never theirs — it belonged to the IRS all along. Move the tax set-aside into a second checking or savings account the day you get paid, and the quarterly bill stops being a surprise. The buffer bucket does the same job for slow weeks and surprise repairs.

Put your numbers to work

Quarterly Tax Estimator →Turn your tax bucket into the four payments the IRS wants. Solo 401(k) vs. SEP-IRA →Shelter more of what you keep from income tax. Emergency Fund Calculator →How big your buffer bucket should be, slow months included. Self-Employment Tax →Your exact 2026 SE tax so the set-aside % is right. Real Take-Home Pay →What you truly earn per hour after costs and taxes. All Calculators →Every GigWorkerTools tool in one place.

Educational estimate only — not tax or financial advice. Uses 2026 figures: self-employment tax 15.3% on 92.35% of net profit (Social Security capped at the $184,500 wage base, Medicare uncapped), half of it deductible against income tax. Expenses, income-tax rate, and buffer are values you enter; real results vary by state, filing status, deductions, and credits. Confirm your situation with a qualified CPA.

How much should a gig worker set aside for taxes?

Most gig and 1099 workers should set aside roughly 25–30% of their gross income for taxes. That covers both self-employment tax (15.3%) and federal plus state income tax. Your exact percentage depends on your business expenses and income level — the calculator above works it out from your real numbers.

What is self-employment tax, and why is it 15.3%?

Self-employment tax is Social Security and Medicare for people who work for themselves. A regular employee splits this with their employer, but as a 1099 worker you pay both halves — 12.4% for Social Security (up to the $184,500 wage base in 2026) plus 2.9% for Medicare, for 15.3% total. You only pay it on your net profit after expenses, and half of it is deductible against your income tax.

Should I set money aside from every payment, or just save up before April?

Set it aside from every payment. Move your tax percentage into a separate account the day you get paid, so the money is never “yours” to accidentally spend. The IRS also expects most self-employed people to pay estimated taxes four times a year, not once in April — so a dedicated tax account makes those quarterly payments painless.