For entrepreneurs who don't want to fall behind

Know exactly how much
to set aside each month.

Most founders fall behind on taxes because they treat one annual bill as a surprise instead of a monthly habit. This estimator uses the same progressive bracket math the IRS uses — so you can budget the right amount each pay period and stop dreading April.

average overpayment when you assume "I'm in the 24% bracket = pay 24%"

extra owed when entrepreneurs forget self-employment tax

The misconception

Your "tax bracket" doesn't mean
what most people think it means.

What most people think

"I'm in the 24% bracket so I pay 24% of my income."

Annual income $144,000

× their "bracket" 24%

They think they owe $34,560

This is wrong by ~$7,000.

What actually happens

Each rate applies only to the income inside its layer.

10% on first $11,925 $1,192

12% on next $36,550 $4,386

22% on next $54,875 $12,072

24% on next $40,650 $9,756

Actual federal tax $27,406

Your effective rate is closer to 19%, not 24%.

The percentage in your bracket only applies to income above a threshold — never to your whole salary.

The estimator

Tell us about your situation.

All math runs in your browser. Nothing is sent to a server, stored, or saved. Brackets are 2025 (verify the latest at IRS.gov each year).

Net taxable income

Your business's net income after deducting legitimate expenses and write-offs. Don't enter gross sales revenue.

Filing status

Set-aside frequency

I'm self-employed Add 15.3% self-employment tax (the silent killer)

States

For founders

Three things W-2 employees don't deal with — but you do.

Self-employment tax

Employees split FICA with their employer (7.65% each). When you're self-employed, you are both halves — that's 15.3% on net SE earnings, on top of income tax. For a $150K founder, this is roughly $20,000+ that catches first-timers off guard.

Quarterly estimates

The IRS expects payment four times a year — April, June, September, January. Miss them and you pay a small underpayment penalty plus interest. The "safe harbor" rule: pay 110% of last year's tax (or 90% of this year's) and you're protected.

Cash-flow whiplash

Treating tax as one annual bill turns spring into a crisis. Setting aside the right amount every pay period — into a separate savings account you don't touch — is the difference between "calm April" and "panic April."

What to do next