About PayoutTax

Updated October 26, 2026

PayoutTax is an independent software tool for US traders who get paid by prop firms. It turns each payout into a clear amount to set aside for taxes, a quarterly payment to make, and a log a CPA can use.

Why it exists

Prop firms usually pay funded traders as independent contractors, so no tax is withheld from a payout, and the bill stacks on top of a day job. Many traders only find out at tax time, with a penalty on top. PayoutTax is built to make that number visible the moment a payout lands.

Where the numbers come from

• Every tax rate, bracket and threshold comes from a primary source: IRS publications, forms and revenue procedures, the Social Security Administration, and each state's revenue department.
• The figures live in one published table per tax year, with the source next to each figure: tax/2026.json. If a figure can't be verified, it's left out and flagged rather than guessed.
• The tax engine is covered by hand-checked test cases, with the arithmetic written out, and the tables are reviewed each fall and January when the IRS publishes the next year's figures.
• Our guides link the IRS sources for every rule they describe.

What the estimates leave out

PayoutTax gives planning estimates, not tax advice. It doesn't include the qualified business income (QBI) deduction, credits, other income, itemized deductions, or local income taxes, and it errs on the side of setting aside more. It is not a CPA firm, enrolled agent, tax preparer or law firm, and it doesn't file returns. Review your numbers with a licensed CPA or IRS enrolled agent before you file or pay.

Independence

PayoutTax is not affiliated with, endorsed by or sponsored by any prop firm. Firm names are used only to describe where payouts come from, and they are trademarks of their owners.

Privacy

The free calculator runs in your browser and stores nothing. Accounts keep only an email and the numbers you enter, never an SSN or bank login, and can be deleted in one click. See the Privacy policy.

Contact

PayoutTax is operated from Illinois, USA. Email hello@payouttax.com, or find us on Instagram and YouTube.