Side Income Tax Calculator
Calculate the true tax on your side hustle, gig work, or extra income. See your marginal rate, SE tax, quarterly payments, and what you actually keep.
All inputs adjust the result in real time. No data leaves your browser.
Side income stacks on top of your W-2 salary, so it’s taxed at your marginal rate — the rate on your highest dollars, not your average rate. Someone earning $70,000 from their day job who makes an extra $15,000 on the side pays taxes on that $15,000 starting at the 22% federal bracket, not the 10% bracket.
If your side income is reported on a 1099 (freelance, gig work, independent contracting), you owe self-employment tax of 15.3% on 92.35% of net earnings. This covers both halves of Social Security (12.4%) and Medicare (2.9%). You can deduct half of SE tax from your income. Hobby income does not qualify for expense deductions or SE tax.
If your total tax liability from side income exceeds $1,000 for the year, the IRS requires quarterly estimated payments to avoid underpayment penalties. Quarterly payments are due April 15, June 15, September 15, and January 15. The amount shown divides your annual side-income tax by four.
Rental income is generally not subject to self-employment tax (unless you’re a real estate professional), but it is subject to income tax. If your net self-employment income is less than $400, you don’t owe SE tax. Business expenses reduce your net income and lower both SE tax and income tax.