Side Hustle Income Tax Calculator

Know what you owe on side income. This free side hustle income tax calculator estimates self-employment and income tax on your side gig — taxed at your top rate — and shows what to set aside.

Your side hustle
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$
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Estimated tax to set aside
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Enter your income and tax rates
Net profit (taxable)
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Self-employment tax
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Income tax
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After-tax income
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Estimate only. You supply the rates, since self-employment and income tax vary by country, year and income. Side income stacks on your job income, so use your top (marginal) income-tax rate. A common US SE-tax rate is 15.3%.

How the Side Hustle Income Tax Calculator Works

Side gig income doesn’t have an employer withholding tax for you, so it’s easy to spend the full amount and get caught short at tax time. This calculator takes your side hustle income and expenses, then applies your self-employment and income tax rates to estimate what to set aside and what you actually keep.

Formula: Net profit = Side hustle income − Business expenses (floored at zero). SE tax = Net profit × SE tax rate ÷ 100. Income tax = Net profit × Income tax rate ÷ 100. Total tax to set aside = SE tax + Income tax. After-tax income = Net profit − Total tax.

  • Income — Side hustle income per year, total revenue from the side gig
  • Expenses — Business expenses per year, deductible costs of running the side hustle
  • SE rate — Self-employment tax rate, covering Social Security and Medicare-style contributions
  • Income tax rate — Your top (marginal) income tax rate, since side income stacks on top of your regular job income
  • Net profit — Taxable profit after expenses are subtracted from income

Example Scenarios

IncomeExpensesSE RateIncome Tax RateTotal Tax to Set Aside
$60,000$9,00015.3%12%$13,923
$20,000$2,00015.3%22%$6,714
$100,000$15,00015.3%24%$33,405
$10,000$1,00015.3%10%$2,277
$40,000$5,00015.3%15%$10,605

Side Hustle Income Tax Calculator FAQ

Why do I have to enter my own tax rates instead of the calculator knowing them?Self-employment and income tax rates vary by country, by year, and by your total income level once combined with your regular job, so there’s no single correct rate to hard-code. Entering your own rates keeps the estimate accurate to your actual situation.
Why should I use my top marginal tax rate instead of my average rate?Side income stacks on top of whatever you already earn from your main job, so it’s taxed at the rate that applies to your last dollar of income, not your blended average rate across all your income. Using your average rate would understate what you owe.
What counts as a deductible business expense for a side hustle?This calculator doesn’t decide that for you — it simply subtracts whatever you enter as expenses from your income before applying tax. Common categories include supplies, a portion of home office costs, mileage, and software, but check current rules that apply to you.
Why is there a separate self-employment tax on top of income tax?Employees split payroll-style tax contributions with their employer, but self-employed and side hustle earners typically cover both halves themselves, which is why a separate self-employment tax rate is applied in addition to ordinary income tax.
Can net profit go negative if my expenses exceed my income?No — the calculator floors net profit at zero rather than showing a negative number, since a loss changes how taxes and deductions work in ways this simple estimator isn’t built to model.
Should I set aside the exact percentage this calculator shows, or more?Many side hustlers set aside a bit more than the calculated estimate as a buffer, since actual liability can shift with deductions, credits, other income changes, or rate changes you didn’t anticipate when you first estimated.

Related Calculators

If your side hustle is your only self-employment income, the dedicated self-employment tax calculator breaks that piece down further, while the freelance tax calculator is built around project-based freelance earnings; to see how your side income shifts your overall tax picture, check the income tax calculator.

Use this free side hustle income tax calculator to estimate the tax on your side income. Enter your side hustle earnings, expenses and tax rates to see what to set aside and what you actually keep.

What this side hustle income tax calculator shows you

A side hustle income tax calculator estimates the tax owed on income you earn alongside a job. It subtracts expenses to find your net profit, then applies self-employment tax and income tax to show the total to set aside and your after-tax side income.

Key point for side hustlers: your side income stacks on top of your day-job income, so it’s usually taxed at your top (marginal) income-tax rate — not your average rate. Use that higher rate here for a realistic estimate. Self-employment tax (commonly ~15.3% in the US) applies on top.

Why side hustle income is taxed at your top rate

Because your salary already fills the lower tax brackets, every extra dollar from a side hustle is taxed in your highest bracket. So if your job puts you in a 22% bracket, that’s the rate to use on side income — plus self-employment tax for the payroll portion you now cover yourself.

How to use the side hustle tax calculator

  1. Enter your side hustle income. Revenue from the side gig only.
  2. Add business expenses. Costs that reduce your taxable profit.
  3. Enter the self-employment tax rate. ~15.3% is common in the US.
  4. Enter your marginal income tax rate. Your top bracket from your day job.
  5. Read your result. Tax to set aside and take-home update instantly.

Tips for managing side hustle taxes

  • Set aside tax from each payment into a separate account so you’re never caught short.
  • Track expenses — they lower the profit that gets taxed at your top rate.
  • Watch for quarterly estimated taxes once side income grows, to avoid penalties.
  • Keep side-hustle money separate from personal spending for clean records.

Side hustle tax terms glossary

Term What it means
Net profit Side income minus deductible expenses.
Marginal tax rate The rate on your highest band of income — what side income is taxed at.
Self-employment tax Payroll taxes you pay on side-gig profit.
Estimated taxes Quarterly payments often required as side income grows.

Side Hustle Income Tax FAQ

How is side hustle income taxed?

Side income is taxed like any self-employment income: profit after expenses is subject to self-employment tax plus income tax.
Because it stacks on your job income, it's taxed at your top (marginal) rate.

What tax rate should I use for side income?

Use your marginal income-tax rate — the bracket your salary already pushes you into — because every extra dollar of side income
falls in that top band. Add self-employment tax (commonly ~15.3% in the US) on top.

How much should I set aside for side hustle taxes?

Many side hustlers reserve 25–35% of profit, depending on their bracket. Putting it in a separate account from each payment
keeps you covered at tax time.

Do I have to report small side income?

In most countries, yes — side income is generally taxable even if small, and thresholds for reporting are low.
Check your local rules, as failing to report can lead to penalties.

Can expenses lower my side hustle tax?

Yes. Legitimate business expenses reduce your net profit, which is what's taxed. Tracking costs like supplies, software and fees
directly lowers your tax bill.

Is the side hustle income tax calculator free to use?

Yes, this side hustle income tax calculator is completely free, needs no sign-up, and gives instant results directly in your browser.

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