Side Hustle Tax Calculator
Estimate the federal self-employment tax and income tax on your side income, plus what to set aside each quarter.
How side hustle income is taxed
Side hustle profit is hit by two federal taxes. Self-employment tax is 15.3% on 92.35% of your net earnings: 12.4% Social Security (up to the $184,500 wage base for 2026, shared with your W-2 wages) plus 2.9% Medicare. Income tax is charged at your top bracket, because side income stacks on top of your job. You can deduct half of your self-employment tax, and the calculator accounts for that.
Do you need to pay quarterly?
If you expect to owe $1,000 or more when you file, the IRS expects estimated payments each quarter. The usual due dates are April 15, June 15, September 15 and January 15. If you also have a W-2 job, you can raise your paycheck withholding instead and skip the quarterly vouchers.
Ways to lower your side hustle taxes
- Track every expense. Supplies, software, phone and internet share, and platform fees are all deductible.
- Log your miles. Business driving is often the biggest single deduction for gig workers.
- Look into the QBI deduction. Many sole proprietors can deduct up to 20% of qualified business income from income tax.
- Open a solo 401(k) or SEP-IRA. Contributions cut your income tax and build retirement savings.
Frequently asked questions
How much tax do I pay on a side hustle?
Usually 25–35% of profit in total: 15.3% self-employment tax on 92.35% of net earnings, plus federal income tax at your marginal rate and any state income tax.
Do I pay taxes if my side hustle made less than $400?
You owe no self-employment tax below $400 of net earnings, but the income is still reportable and may be subject to income tax.
Will I get a 1099 for my side hustle?
Platforms issue 1099-NEC or 1099-K forms above reporting thresholds, but you must report all income whether or not you receive a form.