How Much Should an Artist Set Aside for Taxes?
You got paid for a beat, a show, a placement — and none of it had taxes taken out. Here's the number to hold back so April never surprises you.
The short answer: set aside 25–30% of every dollar you keep from music. Move it the day you get paid — before it feels like spendable money.
Why so much?
A regular job splits your Social Security and Medicare tax with your employer. When you're paid as an independent artist (a 1099, not a W-2), you owe both halves yourself — that's self-employment tax of about 15.3% — on top of regular income tax. That combo is why 25–30% is the safe starting range. Earning well, or living in a high-tax state like California? Lean toward the top of that range or higher.
How to actually keep the money there
- Open a separate "tax" account. A free second checking or savings account is fine.
- Skim on the way in. Every time money hits — a sale, a show, a beat — move 25–30% straight to that account.
- Don't touch it. It was never yours; it's the government's, sitting in your name until it's due.
The "safe harbor" — how to dodge the penalty
The IRS can charge a penalty if you wait until April to pay it all. You avoid that by prepaying during the year and clearing the safe harbor: pay in at least 90% of this year's tax, or 100% of last year's (110% if you're a higher earner) — spread across four quarterly payments.
This is general education, not tax advice — Done Deal Digital isn't a CPA firm. Your exact number depends on your income, state, and write-offs. For your situation, work it out with a qualified CPA.
That's the short version
Get your exact number — not a rule of thumb
The full chapter in Don't Get the Surprise Bill walks you through the fill-in-the-blank worksheet to land your set-aside %, the state adjustments, and the habit system that keeps the cash there when it's due.
Get the Guide — $39 →Or get all seven tax guides in one — The Complete Tax & Money Guide, $99 →