Side Hustle Income Tax Calculator
Calculate taxes on your side hustle, freelance, or gig economy income. Get accurate estimates for self-employment tax, federal, and state taxes.
Quick Answer
Side hustle income is subject to both regular income tax and 15.3% self-employment tax. Use our calculator to determine your total tax liability and quarterly payment requirements.
Calculate Your Side Hustle Taxes
Get precise calculations for self-employment tax and quarterly payment requirements
Calculate With Full ToolWhat is Side Hustle Income Tax?
Side hustle income tax applies to earnings from freelance work, gig economy platforms, consulting, or any self-employment activities. This income is subject to both regular income tax and self-employment tax, which covers Social Security and Medicare contributions.
Self-Employment Tax Breakdown
Self-employment tax totals 15.3% of your net earnings: 12.4% for Social Security (up to $160,200) and 2.9% for Medicare (no income limit). However, you can deduct half of this amount (7.65%) as an above-the-line deduction, reducing your taxable income.
Quarterly Payment Requirements
If you expect to owe $1,000 or more in taxes, you must make quarterly estimated tax payments. These payments are due April 15, June 15, September 15, and January 15. Missing payments can result in penalties and interest charges.
Side Hustle Tax Calculation Formula
Net Income = Gross Income - Business Expenses - Self-Employment Tax - Income Tax
Net Earnings: Gross Income - Business Expenses
Self-Employment Tax: Net Earnings × 92.35% × 15.3%
Taxable Income: Net Earnings - (Self-Employment Tax ÷ 2)
Income Tax: Based on tax brackets and filing status
Quarterly Payment: Total Tax ÷ 4 (to avoid penalties)
Step-by-Step Example
Example: $15,000 Side Hustle Income
Step 1: Gross Income: $15,000
Step 2: Business Expenses: $2,000
Step 3: Net Earnings: $15,000 - $2,000 = $13,000
Step 4: Self-Employment Tax: $13,000 × 92.35% × 15.3% = $1,837
Step 5: SE Tax Deduction: $1,837 ÷ 2 = $919
Step 6: Taxable Income: $13,000 - $919 = $12,081
Step 7: Federal Income Tax: ~$1,208 (12% bracket)
Step 8: Total Tax: $1,837 + $1,208 = $3,045
Step 9: Quarterly Payment: $3,045 ÷ 4 = $761
This example shows how $15,000 in side hustle income results in $3,045 total tax, requiring quarterly payments of $761 to avoid penalties.
Who Should Use This Calculator?
Freelancers
Calculate taxes on 1099 income and client work
Gig Workers
Uber, DoorDash, Instacart, and platform workers
Consultants
Professional services and consulting income
Side Hustlers
Etsy sellers, YouTubers, and content creators
Frequently Asked Questions
What expenses can I deduct from side hustle income?
Ordinary and necessary business expenses: home office, supplies, software, mileage, marketing costs, professional fees, and insurance premiums directly related to your business.
Do I need to register as a business?
Not necessarily. You can operate as a sole proprietor using your Social Security number. However, consider forming an LLC for liability protection if your side hustle grows significantly.
What if I don't make quarterly payments?
The IRS charges penalties of 0.5% per month on underpaid taxes, plus interest. The penalty increases if you consistently miss payments or underpay significantly.
How do I track business expenses?
Use accounting software like QuickBooks, FreshBooks, or even spreadsheets. Keep receipts, mileage logs, and bank statements. The IRS requires documentation for all deductions.
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