When you work for yourself, no one withholds tax for you — you have to estimate it, set money aside, and know your real take-home before you price a job. Here's how self-employed tax works in plain terms, and a free calculator to run your numbers.
Estimate your tax free →What gets taxed
Depending on your country's regime, tax is charged either on your income (your revenue) or on your profit (income minus business expenses). Some regimes tax a flat percentage of turnover; others tax profit at a progressive rate. The regime you're on changes both the rate and what it's applied to.
Gross, tax, and take-home
Your take-home is your income minus tax (and minus expenses, if they aren't deductible). The effective rate — tax divided by gross income — is the real share you lose, and it can differ from the headline rate once expenses and thresholds are counted.
Set money aside as you earn
Because tax isn't withheld, move a percentage of every payment into a separate account the moment it arrives. Estimating your rate up front tells you exactly how much to hold back so there's no nasty surprise at tax time.
Price with tax in mind
Quote rates that leave you the take-home you actually need after tax and expenses — not your gross. Working backwards from your target take-home is the difference between a rate that looks fine and one that pays your bills.
This is an estimate, not advice
Rules, thresholds and deductions vary by country and change over time. Use a calculator to plan and to sanity-check a price, but confirm the specifics with an accountant before you rely on a figure.
Frequently asked questions
How much should I set aside for tax?+
Enough to cover your estimated rate — often 10–30% depending on your regime. Estimate it first, then move that share of each payment into savings as it arrives.
Is tax on my income or my profit?+
It depends on your regime. Some tax turnover (gross income), others tax profit (income minus expenses). The calculator lets you choose which applies.
What's the effective tax rate?+
Your total tax divided by your gross income — the real percentage you lose, which can differ from the nominal rate once expenses and thresholds apply.