Freelancer Quarterly Tax Cushion

Estimate how much cash to set aside each month so quarterly tax filings never surprise you. Enter projected revenue, tax rate, deductions, and any contributions to see the monthly cushion required.

Gross revenue you expect to bill in the quarter.
Blended percentage owed after deductions are applied.
Optional. Defaults to 0 if left blank.
Optional. Defaults to 0 % when no retentions apply.
Optional. Defaults to 0 if contributions are paid separately.
Optional. Defaults to 0 when VAT is neutral.
Optional. Defaults to 3 months per quarter.
Optional. Defaults to 8 % to cushion unexpected adjustments.

Examples

  • Designer billing $18,000 in the quarter, 24 % tax, $2,500 deductions, 10 % retentions, $900 contributions, $1,200 VAT, 8 % buffer ⇒ Monthly reserve: $1,447.20
  • Consultant earning $30,000, 30 % tax, $4,000 deductions, 5 % retentions, $1,500 contributions, no VAT, 12 % buffer ⇒ Monthly reserve: $2,912.00

FAQ

How should I estimate the effective income tax rate?

Use the blended percentage from your last filing or projected marginal brackets including deductions and credits.

What happens if clients already withhold taxes on invoices?

Enter their withholding percentage so the calculator subtracts those amounts from your quarterly obligation.

Can I plan for a different period than a quarter?

Yes. Change the months field to reflect the window you are saving over, such as two months for accelerated payments.

Additional Information

  • Quarterly obligation combines income tax, mandatory contributions, VAT payable, and subtracts existing withholdings before adding the safety buffer.
  • Monthly reserve divides the buffered total by the number of months you have to accumulate the cash, usually three.
  • Adjust the buffer upward if assessments tend to vary or if exchange-rate swings impact your tax payments.

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