Side Hustle Income Calculator

Calculate what you actually keep from side hustle income after self-employment tax, federal, and state taxes.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS — Gig Economy Tax Center

$
$
%
%

Net Take-Home

$10,332.25

Total Tax

$6,667.75

Effective Rate

39.2%

Income & Tax Breakdown

Gross Income$20,000.00
Business Expenses- $3,000.00
Net Self-Employment Income$17,000.00
SE Tax (15.3% on 92.35%)- $2,402.02
Federal Income Tax (22%)- $3,475.78
State Income Tax (5%)- $789.95
Total Tax- $6,667.75
Net Take-Home$10,332.25

Self-Employment Tax Detail

Net SE Income$17,000.00
SE Taxable (92.35%)$15,699.50
Social Security (12.4%)$1,946.74
Medicare (2.9%)$455.29
Total SE Tax$2,402.02
SE Tax Deduction (50%)- $1,201.01

Quarterly Estimated Payments

Q1 (Jan-Mar)$1,666.94 due April 15
Q2 (Apr-Jun)$1,666.94 due June 15
Q3 (Jul-Sep)$1,666.94 due September 15
Q4 (Oct-Dec)$1,666.94 due January 15 (next year)
For every $1,000 you earn, you keep approximately $516.61 after all taxes and expenses.

Use the Side Hustle Income Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The gap between what a side hustle grosses and what you keep can be surprisingly wide once taxes enter the picture. Enter your earnings here to estimate net income after self-employment, federal, and state taxes are stripped out, giving you an honest view of profitability.

Calculation runs in sequence. It starts with your net earnings from self-employment (income minus expenses), then layers on self-employment tax of 15.3% on 92.35% of that profit: 12.4% for Social Security, which applies only up to the $184,500 wage base for 2026 (a cap that rises with average wages each year), and 2.9% for Medicare. Half of the SE tax is deducted, and the federal bracket and state rate you enter are applied as flat rates to the rest. There is no standard deduction in the calculation, so it fits side income earned on top of a job that already uses up the standard deduction; enter the bracket your total income reaches.

Diligent expense tracking pays off directly, since every legitimate business deduction shrinks the income that gets taxed. Quarterly estimated payments are easy to overlook, yet missing them invites penalties, so set aside a slice of each payment for taxes the moment it arrives rather than scrambling at filing time.

Example: Freelance Designer with a Day Job

  1. 1 Input: Gross side hustle income $15,000, business expenses $2,000, federal tax bracket 12% (the designer's salary already uses up the standard deduction), state tax rate 5%.
  2. 2 Self-employment tax: net earnings $13,000 × 92.35% = $12,005.50, × 15.3% = $1,836.84 ($1,488.68 Social Security at 12.4% plus $348.16 Medicare at 2.9%).
  3. 3 Income tax: half the SE tax, $918.42, is deducted, leaving $12,081.58. Federal tax at 12% is $1,449.79 and state tax at 5% is $604.08.
  4. 4 Result: total tax $3,890.71, an effective 29.9% of the $13,000 profit, leaving $9,109.29 of take-home, about $607 for every $1,000 of gross income. Setting aside $972.68 a quarter covers it. The calculator does not subtract the qualified business income deduction (up to 20% of business profit), which would lower the federal figure.

Source: IRS — Gig Economy Tax Center · Last updated: September 2026

Frequently Asked Questions

How much tax do I pay on side hustle income?
Side hustle income is subject to self-employment tax (15.3% for Social Security and Medicare) plus federal and state income tax at your marginal rate. A common mistake is not realizing the SE tax alone takes about 14.1% of profit (15.3% on 92.35% of it) before income tax.
Do I need to pay quarterly estimated taxes on side income?
Yes, if you expect to owe $1,000 or more in taxes from self-employment income. Quarterly payments are due April 15, June 15, September 15, and January 15. Missing these deadlines triggers underpayment penalties.
What expenses can I deduct from side hustle income?
You can deduct ordinary and necessary business expenses: supplies, software, home office (simplified method: $5/sq ft up to 300 sq ft), mileage (76 cents/mile since July 2026), internet (business portion), equipment, and professional development directly related to your hustle.

You might also need

Freelance Rate Calculator

Calculate your minimum freelance hourly rate based on desired income, expenses, taxes, and billable hours.

Consulting Fee Calculator

Calculate your consulting rate based on income goals, billable hours, overhead, and profit margin.

Uber/Lyft Earnings Calculator

Calculate Uber/Lyft driver earnings after gas, maintenance, and self-employment taxes.