How much should you set aside for tax?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
As a rule of thumb reserve 20-25% of profit up to € 25,000, 30% up to € 50,000, 35% up to € 80,000 and 40-45% above that, including the 4.85% healthcare contribution; VAT received sits apart.
- Box 1 has three brackets in 2026: 35.75% up to € 38,883, 37.56% up to € 78,426 and 49.50% above that.
- The healthcare contribution is 4.85% on a contribution income of at most € 79,409 and arrives as a separate assessment.
- Move the reserved amount to a separate account, so your main account only shows what is really yours.
- Requesting a provisional assessment works just as well: you pay monthly in advance and avoid tax interest.
As an employee your tax is deducted automatically, but as a self-employed person you have to arrange that yourself. At the end of the year you get an assessment, and the money has to be there. Many starting entrepreneurs get into trouble because of this; it is the classic among the mistakes in your first year. This article explains how much you sensibly set aside.
Why do you have to reserve yourself?
On your profit you pay income tax, but that's not deducted automatically as with a salary. You receive your turnover in full and have to keep the tax part aside yourself. If you don't, you face an unpleasant surprise at the assessment.
What rule of thumb can you use?
A commonly used rule of thumb is to set aside about 30% of your profit for income tax, and closer to 40 to 45% once profit exceeds 80,000 euros. The exact percentage depends on your profit, your deductions and your personal situation. If you earn more, you fall into a higher bracket and so set aside relatively more. For a good estimate you can use last year's assessment as a guideline.
Don't forget the VAT
Besides income tax you must also keep the received VAT aside. That VAT isn't yours; you collect it for the tax authorities and remit it quarterly. So put the VAT you receive on invoices straight into a separate account, so you don't accidentally spend it.
How do you handle this practically?
The handiest approach is a separate account where with every payment you immediately move your tax and VAT portion. That way your main account only shows the money that's really yours. Requesting a provisional assessment can also help, because you then pay in instalments instead of all at once.
A rule of thumb per profit range
How much to set aside mainly depends on your profit, since income tax is progressive. These rules of thumb include the healthcare contribution and assume the deductions most freelancers have.
| Expected annual profit | Set aside |
|---|---|
| Up to € 25,000 | 20 to 25% |
| € 25,000 to € 50,000 | 30% |
| € 50,000 to € 80,000 | 35% |
| Above € 80,000 | 40 to 45% |
Or let the tax authorities set the rhythm
If you would rather not reserve yourself, request a provisional assessment and pay monthly in advance. Same result, no tax interest, and you can adjust mid-year if profit turns out differently.
Frequently asked questions
How much should I set aside as a starting freelancer?
With modest profit up to 25,000 euros, 20 to 25 per cent usually suffices, thanks to credits and deductions. As you grow, move towards 30 per cent or more.
Is VAT included in those percentages?
No. The VAT on your invoices is the tax authorities' money passing through; set it apart as soon as an invoice is paid, on top of the income tax reservation.
Should I reserve for the healthcare contribution too?
Yes, 4.85 per cent of profit in 2026, as a separate assessment. The rules of thumb here already include it. See Zvw contribution.
Where do I keep the reserved money?
In a separate account you do not look at daily, apart from your working money. Make it a fixed habit: transfer the percentage the moment each invoice is paid.
What if I reserved too little?
Request a provisional assessment for the current year immediately and spread the rest. If you genuinely cannot pay an assessment, a payment arrangement is possible; see unable to pay your tax.
Does the self-employed deduction change the percentage?
Somewhat, but less than before: the deduction is only 1,200 euros in 2026. The rules of thumb already allow for it; when in doubt, run your own numbers once precisely.
Sources
- Rates and tax credits 2026Belastingdienst · belastingdienst.nl
- Healthcare contribution percentages 2026Belastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
