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Wednesday, October 21, 2026·2026 Edition
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Self-Employment Calculators

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.

By Jacob McEwen·Updated for 2026 tax year·Editorial standards
Extra income calculation — representing how gig, freelance, or rental income stacks on top of W-2 salary at marginal rates
Photo by Mr Cup / Fabien Barral on Unsplash
Interactive Calculator

All inputs adjust the result in real time. No data leaves your browser.

Tax Year
$
$
$
You Keep $8,505 of $15,000
$8,50534.6% marginal rate
56.7% of gross side income kept after all taxes
Marginal Tax Rate
34.6%
On side income
SE Tax
$1,837
15.3% on 92.35%
Quarterly Payment
$1,124
Required (>$1,000/yr)
Net After Taxes
$8,505
$709/month
Tax Breakdown
W-2 Salary$70,000
Gross Side Income$15,000
Business Expenses−$2,000
Net Side Income$13,000
SE Tax (15.3%)−$1,837
SE Deduction (50%)−$918
Marginal Federal Tax−$2,658
Marginal Texas Tax$0
Total Extra Tax$4,495
Net Side Income After Taxes$8,505
Monthly Net From Side Income$709
Quarterly Estimated Payment$1,124
The Background

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.

Related Guides
The Freelancer's Complete Tax Playbook for 2026
1099 vs W-2: The Real Math of Going Freelance in 2026
The S-Corporation Election: Complete 2026 Guide
The QBI Deduction (Section 199A): Deep Dive for 2026
Frequently Asked
How is side income taxed?+
It stacks on top of your salary, so every dollar is taxed at your top federal bracket and state rate, and if it is self-employment income — freelance, gig work, consulting, an online shop — it also owes 15.3% self-employment tax on 92.35% of net profit. A worker in the 22% bracket in a 5% state keeps about 60 cents of each side-hustle dollar; the calculator shows the exact marginal rate for your situation.
Do I owe self-employment tax on a small side hustle?+
Yes, once net profit from self-employment reaches $400 for the year. Below that, income tax still applies but self-employment tax does not. Rental income and investment income are not self-employment income and owe no SE tax; income from an employer that gives you a W-2 is already taxed through payroll.
Will I get a 1099 for side income?+
Clients who pay you $2,000 or more in a year must send a 1099-NEC starting with 2026 payments (the threshold was $600 through 2025). Payment apps and marketplaces send a 1099-K once you pass $20,000 and 200 transactions. Whether or not a form arrives, all of the income is taxable and must be reported.
Do I need to make quarterly payments for side income?+
If the extra tax will be $1,000 or more, yes — or you can raise the withholding on your W-2 job to cover it, which the IRS treats as paid evenly through the year and is simpler than four estimated payments. The calculator's quarterly figure is the amount to send each quarter, or the extra annual withholding to request on a new W-4.
What can I deduct against side income?+
Ordinary and necessary business expenses: supplies, software, a share of phone and internet, mileage at the 2026 IRS rate, a home office used exclusively for the work, platform fees, and half of the self-employment tax. The 20% qualified business income deduction applies to most side businesses below roughly $200,000 of taxable income. Enter expenses as a net figure to see the after-deduction result.
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