Guide · Taxes
The set-aside: what to move aside from every payment
The verdict
Self-employment tax alone takes about 14 cents of every profit dollar; your bracket adds its share on top.
The set-aside is the whole tax game in one habit: every time hustle money lands, move a fixed percentage into a separate account before it becomes spending money. The math behind the percentage: self-employment tax is 15.3% on 92.35% of your net profit — about 14.1% of every profit dollar — and income tax stacks at your marginal bracket on top.
A beginner in the 12% bracket is looking at roughly a quarter of profit; in the 22% bracket, roughly a third. Those are set-aside planning figures from the IRS mechanics, not a tax bill computation — your real return depends on deductions, the deductible half of SE tax, and your whole household picture.
The forums' April horror stories are never about the rate. They are about the money already being spent. The percentage is boring, and boring is the point.
The math, shown
- SE tax: 15.3% × 92.35% ≈ 14.1% of net profit
- + 12% bracket ≈ 26% set-aside
- + 22% bracket ≈ 34–36% set-aside (after the SE deduction, less)
Run your own numbers: the Fit Finder · the Real Pay Checker · the tax door
More in this cluster
Checked October 23, 2026. Figures carry their sources inline; when a schedule changes, this guide is frozen until re-verified (see the method).