The short answer
A common rule of thumb is 25% to 30% of your profit (what you earn minus business expenses). That covers self-employment tax of about 15.3% plus income tax. Your real number depends on your total income and deductions.
Last reviewed: October 2026
Why it's more than a regular job
On a W-2 job, your employer pays half of Social Security and Medicare tax. When you're self-employed, you pay both halves: about 15.3% of your profit. Income tax comes on top.
What brings it down
- Business expenses, especially mileage. See driver deductions.
- The qualified business income deduction, which can cut taxable income by up to 20% of your profit for many small businesses.
- No Florida income tax. Floridians only need to plan for federal tax.
A simple system
- Open a separate savings account.
- Move 25% to 30% of every payout into it.
- Send the IRS quarterly estimated payments from it.
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Official source: IRS: Self-employment tax.
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.