As an employee, your employer withholds the taxes: you only see the net. As a self-employed person or freelancer it is all different: you receive the gross and it is you who must set aside what will be needed for taxes and contributions, often to be paid months later. The most common — and most dangerous — mistake is to spend the entire income and find yourself without liquidity when the tax deadline arrives. The self-employed tax calculator tells you how much to set aside from your gross for taxes and contributions, how much net is left and what percentage of revenue to save at each payment. It is the tool to never be caught unprepared by the taxman.

What tax set-aside for the self-employed is

The tax set-aside is the amount that a self-employed person, a freelancer or a VAT-registered professional must put aside from their income to pay, when the time comes, the income tax and the social security contributions. Unlike the employee, the self-employed person receives payments gross and has no one withholding taxes at source: the responsibility to set aside is entirely theirs. Not setting aside means spending money that actually belongs to the tax authorities, and finding yourself in difficulty at the deadlines. The calculator estimates this amount by applying the rates to the taxable income, so you know exactly how much of your income is "yours" and how much must be kept aside.

How to calculate how much to set aside

The calculation starts from the taxable income (gross income minus deductible expenses) and applies to it the sum of two rates: that of the income tax and that of the social security contributions. With a gross income of 50,000, deductible expenses of 10,000 (taxable 40,000), a tax rate of 25% and contributions at 15%, the set-aside is 40,000 × (25% + 15%) = 40,000 × 40% = 16,000: 10,000 of tax and 6,000 of contributions. The net income is 40,000 − 16,000 = 24,000. The calculator does these steps and also gives you the share of gross to set aside (here 32%), the most practical number to keep in mind.

The taxable income: gross minus expenses

The taxable income is the base on which taxes and contributions are calculated, and almost never coincides with revenue. From the gross income (your receipts) you subtract the deductible expenses: costs incurred for the activity — equipment, software, office rent, training, consulting, travel expenses — that the law allows you to deduct. The more deductible expenses you have, the lower the taxable income and therefore the set-aside. Be careful: some regimes (like the Italian flat-rate one) do not deduct actual expenses but apply a flat profitability coefficient. In the calculator enter the actually deductible expenses according to your regime; if your regime is flat-rate, enter as taxable income the taxable part calculated with the coefficient.

The income tax

The income tax is the tax you pay to the State on your taxable income. In many countries it is progressive: the rate grows in brackets as income increases (in Italy the IRPEF, in Spain the IRPF, in France the impôt sur le revenu, in Germany the Einkommensteuer). Some favorable regimes for the self-employed instead apply a flat rate (like the Italian flat-rate at 5% or 15%, or specific flat taxes). This calculator uses a single rate: for an estimate with a progressive system, enter the average or marginal rate expected on your income. It is a simplification: the exact calculation depends on the brackets, deductions and allowances of your country.

The social security contributions

The social security contributions are the mandatory payments to social security (pension, welfare) that the self-employed pay in addition to taxes, and are often the heaviest and most underestimated item. In Italy, for example, the INPS Separate Management is around 26% and the professional funds vary; in Spain the autónomos pay a monthly fee increasing with income; in France the cotisations sociales are substantial. These contributions are usually calculated on the taxable income and must be set aside together with the taxes. Many beginner self-employed forget the contributions and set aside only for the taxes, finding themselves short: the calculator lets you enter both rates for a complete estimate.

Why setting aside is vital for the self-employed

Setting aside is the number-one financial discipline of the self-employed person. The reason is the time mismatch: you receive today, but you pay taxes and contributions months later (often the following year, with advances and balance). If you spend the whole income thinking it is yours, at the deadline you will lack the liquidity and risk debts, penalties and interest. Setting aside the right percentage at each payment received — putting it aside immediately — turns a distressing obligation into a painless automatism. It is the difference between a sustainable self-employed activity and one perennially struggling with the taxman. The calculator gives you the exact percentage to set aside, so you can automate the habit.

The share of gross to put aside

The most practical number the calculator provides is the share of gross to set aside: the percentage of each income to put aside immediately. With tax 25%, contributions 15% and expenses equal to 20% of revenue, the share is 32% of the gross. It means that, for every 1,000 received, you should set aside 320. This percentage is the practical rule to apply to each paid invoice: as soon as you receive a payment, you move that share to a dedicated account and consider "yours" only the rest. It is much more effective than calculating everything at year-end. The share depends on your income and regime: recalculate it if rates, expenses or brackets change.

The real net income

The net income is what really remains after paying taxes and contributions: your true earnings. Many self-employed confuse revenue with income, but they are different things: on 50,000 of gross, after expenses, taxes and contributions there may be 24,000 or less left. Knowing the real net is essential to understand how much you really earn, to set the rates (you must cover taxes and contributions in addition to your compensation) and to plan personal life. The calculator shows you the net alongside the set-aside, so you have the complete picture: how much is the taxman's and how much is yours. A net that is too low is the signal that you must raise the rates or reduce the costs.

Typical rates by context

Rates vary enormously by country and regime; here are some purely indicative references:

These are generic references and not rules: rates, brackets, regimes and coefficients vary by country, year and situation. Always check with an accountant.

Example: set-aside for different incomes

With a tax rate of 25% and contributions at 15% (total 40%), without expenses, here is how much to set aside:

With flat rates the set-aside grows proportionally to the income. With progressive taxes, instead, the share to set aside increases on higher incomes.

The effect of deductible expenses

With a gross income of 50,000 and rates at 40% total, the deductible expenses reduce the set-aside:

Every euro of deductible expense lowers the taxable income and therefore taxes and contributions: correctly recording the activity's expenses is one of the most effective legal ways to reduce the tax burden.

Employee versus self-employed: who pays the taxes

The fundamental difference is who pays the taxes and when. The employee receives the salary already net: the employer withholds taxes and contributions at source and pays them for them. The self-employed person receives the gross and must calculate, set aside and pay everything themselves, usually with advances and balance on set dates. This gives the self-employed more flexibility but more responsibility: if they do not set aside, the taxman's money "seems" theirs and gets spent. Moreover the self-employed often pays higher contributions in percentage and does not have the protections of employment. Understanding this difference is the first step to managing well one's finances as a self-employed person.

Advances and balance: the second-year trap

Many tax systems require, in addition to the balance of the taxes of the year just closed, advances for the current year, calculated on the previous income. The result is the infamous "second-year trap": in the second year of activity you may find yourself paying the balance of the first year plus the advances of the second, almost double the taxes in one go. Those who have not set aside enough go into crisis. The calculator estimates the burden on an annual basis; remember that the timing of the payments (advances + balance) can concentrate the outlay and requires an even more prudent reserve, especially in the early years and when income grows.

How and where to set aside

The best method is simple: open a separate account dedicated to taxes and, every time you receive income, immediately move there the percentage to set aside. This way you never see that money as available and do not risk spending it. Some prefer a savings account that also gives a small interest on the amount waiting. The golden rule: set aside at each income, not at year-end. If your income is variable, apply the percentage to each paid invoice; if it is stable, you can set aside a fixed monthly amount. Review the percentage if income, rates or regime change. The discipline of immediate set-aside is what distinguishes the serene self-employed from the struggling ones.

How the calculator works

Enter the gross income (revenue), any deductible expenses, the income tax rate and the contribution rate. The calculator returns how much to set aside in total for taxes and contributions, the income tax, the contributions, the net income after everything and the percentage share of gross to put aside. In a few seconds you know exactly how much of your income to keep aside for the taxman and how much is really yours.

The data you need

You need two to four data. The gross income: your receipts or revenue for the period. The deductible expenses, if your regime provides for them (in the flat-rate one, enter as taxable income the taxable part according to the coefficient). The tax rate: the flat one of your regime, or the estimated average or marginal rate if the system is progressive. The contribution rate applicable to your fund or scheme. If you do not know the exact rates, ask your accountant or start from prudent values (it is often advisable to set aside 30-40% of the gross or more) to not underestimate.

Common mistakes

• Not setting aside at all and spending the whole income as if it were net.
• Setting aside only for the taxes, forgetting the social security contributions.
• Confusing revenue with the real net income.
• Underestimating the second-year trap (balance + advances).
• Using a flat rate where the system is progressive, underestimating on high incomes.

How to use the calculator

Enter the data and read how much to set aside: it is the amount to keep aside for the taxman. Use the percentage share as a practical rule: apply it to each income, immediately moving that percentage to a dedicated account. Look at the net income to understand how much you really earn and whether your rates are adequate. Simulate different scenarios (more expenses, higher income) to plan. Remember: the calculation uses flat rates and is an estimate; the real burden depends on the progressive brackets, deductions, regime and country. Always check with an accountant and set aside prudently, especially in the early years.

Practical example

You are a freelancer with a gross income of 50,000, 10,000 of deductible expenses, a tax rate of 25% and contributions at 15%. The calculation: taxable income 40,000, tax 10,000, contributions 6,000, for a total to set aside of 16,000; the net income is 24,000 and the share of gross to set aside is 32%. Knowing that you must put aside 32% of each income, every time you receive 1,000 you immediately move 320 to a tax account: at year-end you will have the 16,000 ready, without surprises. You also discover that your real net is 24,000, not 50,000: a precious figure for setting the rates. Enter your numbers. The calculation is a generic estimate with flat rates: it does not apply the progressive brackets, deductions, allowances, profitability coefficients, thresholds or the specific regimes of any country. It is an informational tool, not tax advice; for the exact calculation and the choice of regime consult an accountant.

Frequently asked questions

How much should I set aside for taxes as self-employed?

It depends on rates and expenses, but it is often advisable to set aside 30-50% of the gross. With tax 25%, contributions 15% and expenses at 20%, you set aside about 32% of revenue. The calculator gives you the exact percentage for your case.

How is the amount to set aside calculated?

To set aside = (gross income − deductible expenses) × (tax rate + contribution rate)/100. E.g.: gross 50,000, expenses 10,000, tax 25%, contributions 15% → 40,000 × 40% = 16,000. The net is 24,000.

What is the difference between taxes and contributions?

Income taxes go to the State (income tax); social security contributions go to social security for your pension and welfare. Both are calculated on the taxable base and must be set aside. Many forget the contributions, which are often the heaviest item.

What is the taxable income?

It is the income on which taxes and contributions are calculated: the gross minus deductible expenses. It is not the revenue. With gross 50,000 and expenses 10,000, the taxable is 40,000. In flat-rate regimes a coefficient is used instead of actual expenses.

Why is setting aside so important?

Because you receive today but pay taxes and contributions months later. If you spend everything thinking it is yours, at the deadline you lack the liquidity and risk debts and penalties. Setting aside the right share at each income makes paying taxes painless.

What percentage of revenue should I put aside?

The share the calculator calls "of gross to set aside". With tax 25%, contributions 15% and expenses at 20%, it is 32%. Apply it to each income: for every 1,000 received, immediately move 320 to a dedicated tax account.

Does the calculator use progressive rates?

No, it uses a flat rate. Many systems have progressive bracket taxes: for an estimate, enter the average or marginal rate expected on your income. The exact calculation depends on the brackets, deductions and regime of your country.

What is the second-year trap?

Many systems require advances for the current year in addition to the balance of the closed year. In the second year you may pay balance + advances together, almost double. Those who have not set aside enough go into crisis: keep a prudent reserve, especially at the start.

How do I legally reduce the taxes to set aside?

By correctly recording all the deductible expenses of the activity (equipment, software, office, training), which lower the taxable base. Every euro deducted reduces taxes and contributions. Also evaluate the most suitable tax regime with an accountant.

Are revenue and net income the same thing?

No. Revenue is how much you receive (gross); net income is what remains after expenses, taxes and contributions. On 50,000 of gross there may be 24,000 left. Knowing the real net is essential to set the right rates.

Where should I set aside the tax money?

In a separate dedicated account, so you do not see it as available. Move the percentage at each income, not at year-end. A savings account can give a small interest on the amount waiting. The rule: set aside immediately, always.

Is it tax advice?

No, it is an informational tool with flat rates. It does not apply progressive brackets, deductions, allowances, coefficients or specific regimes. For the exact calculation, the choice of regime and planning, consult an accountant.

Updated July 2026