Side Hustle Tax Calculator
A day job and freelance, gig or resale income on the side. See the extra tax the side money adds, what to set aside from it and how to cover it through your paycheck.
Side income lands on top of your salary, so it is taxed at your highest bracket plus 15.3% self-employment tax on 92.35% of the profit. Most people need to keep 20–35% of side income for federal tax, depending on salary and expenses.
- You keep $7,949
- SE tax $1,484
- Income tax $1,067
- State $0
- Expenses $1,500
| Side profitIncome − expenses | $10,500 |
| Self-employment tax15.3% on $9,697 | $1,484 |
| Extra federal income taxTop bracket 22% with the side income | $1,067 |
| Total extra tax | $2,551 |
Why side income is taxed more than your salary
Your job's wages fill the lower federal brackets first. The side money goes on top, so its income tax is charged at your marginal rate: 12% for a $60,000 salary as a single filer, before the side income moves you any higher. Then comes self-employment tax, because no employer pays half of Social Security and Medicare on it.
Two things soften that. Half of the self-employment tax is deductible, and most side businesses get the 20% qualified business income deduction on their profit. Both are built into the numbers above.
When the wage base helps
Social Security tax stops at the wage base ($184,500 in 2026). Your W-2 wages count first, so if your salary is close to or above it, your side profit owes only the 2.9% Medicare part (plus 0.9% additional Medicare at high incomes). Schedule SE handles this on line 8.
Withholding or quarterly payments?
The IRS expects estimated payments once you would owe $1,000 or more at filing. With a day job you have a simpler route: ask payroll to withhold more. Withholding counts as if paid evenly across the year, so a W-4 change in autumn still protects you from the underpayment penalty for the whole year (IRS Publication 505). Quarterly payments suit income that is lumpy or hard to predict.
For a deeper look at a full freelance year, use the self-employed tax calculator; to compare going full-time freelance with staying employed, try 1099 vs W-2. Drivers can add miles in the DoorDash and Uber tax calculator.
Questions freelancers ask
How much tax will I pay on side hustle income?
Side income is stacked on top of your salary, so it is taxed at your highest income tax bracket, plus 15.3% self-employment tax on 92.35% of the profit (until your wages and side profit together pass the Social Security wage base, $184,500 in 2026). For a single filer earning $60,000 at a job, $10,000 of side profit adds about $2,400 of federal tax. The calculator above shows your exact figure.
Do I have to pay taxes on a side hustle if I already have a W-2 job?
Yes. All business income is taxable, and you owe self-employment tax once your net side profit reaches $400 for the year, whether or not you receive a Form 1099. You report it on Schedule C and Schedule SE with your regular Form 1040.
Can I raise my W-4 withholding instead of paying quarterly?
Yes. Entering an extra amount per pay period on line 4(c) of Form W-4 covers the tax on your side income. The IRS treats withholding as paid evenly through the year, so raising it late in the year still counts toward the underpayment safe harbor. The calculator gives the extra amount per paycheck.
Is there a minimum before side hustle income is taxed?
There is no minimum for income tax: every dollar of profit is taxable. Self-employment tax only applies when net earnings from self-employment are $400 or more. Payment apps and marketplaces report to the IRS using the 1099-K threshold, but that only affects whether you get a form, not whether you owe tax.
What side hustle expenses can I deduct?
Ordinary and necessary costs of the side business: supplies, software, a share of your phone, business mileage, platform fees and a home office used regularly and exclusively for the business. Deductions cut both income tax and self-employment tax, so each $100 of expenses saves more than your bracket rate.