Side Hustle Tax Calculator

Side hustle income comes with a tax surprise that catches most people off guard: self-employment tax. Unlike W-2 wages where the employer pays half of Social Security and Medicare, side hustlers owe the full 15.3% on top of their regular income tax. This calculator breaks down the total tax burden on side income so you can plan for quarterly payments and avoid an unexpected bill in April.

The calculator computes three layers of tax. First, self-employment tax at 15.3% of 92.35% of net earnings. Second, federal income tax at your marginal rate — which depends on your day job income since side hustle income stacks on top. Third, an estimated state tax based on the rate you provide. The quarterly payment estimate divides the total by four so you know what to send the IRS each quarter. The deductible half of self-employment tax is factored in to keep the federal income tax calculation accurate.