How much do you set aside for taxes?

Whether a terms sale or cash, what percentage do you take from your profits to set aside for Uncle (or transitioning to Aunt?) Sam at the end of the year (or possibly pay in early installments–I think you can do that?)? This will obviously vary depending on overall household income and such, but I’m curious what sort of tax burden I would need to calculate out of the ROI for cash, and to a lesser extent terms, sales.

@scottholmes you’d probably want to start by figuring out what tax bracket you’re in, not to mention what state income taxes (if any) you’d have to pay. Some states don’t require any state income tax, but most do.

Here’s a link that might help you figure out your tax bracket.

Here’s a link for finding out what kind of state income tax you’ll have to think about.


I set aside 15%. It isn’t always enough to cover all of my taxes, but at the very least, it’s a good head start that takes most of the sting out of tax time.

Appreciate the responses-- 15% seems like a good rule of thumb. I’ll look deeper into my specific situation with regard to my tax bracket for federal and state.

I’m starting a whole/permanent life insurance policy to get a (late) start on the whole infinite banking concept… I’ll plan to house my profits and tax allotment there until I need to put it back into the business/pay taxes.