Tax Calculator for Side Hustle
Estimate 2026 tax on side-gig income — federal, 15.3% self-employment, and state — with your W-2 day job factored in.
Side income sits on top of your wages, so it is taxed at your highest bracket. Enter your gig revenue, expenses, and W-2 pay to see the real number to set aside.
Self-employed income & expenses
Estimate federal + SE + state tax for the 2026 tax year in one pass.
Estimated total tax bill
$13,930
Refund / owed
-$13,930
Effective rate
23.2%
Detailed breakdown
Mileage deduction$5,600
Total business expenses$8,100
Net self-employment income$51,900
Self-employment tax (15.3%)$7,333
½ SE deduction (above-the-line)$3,667
Adjusted gross income$48,233
Taxable income$32,133
Federal income tax$3,608
State tax (est.)$2,988
Quarterly estimated payment$3,260
Marginal rate21.3%
Frequently asked questions
- How much tax do I pay on side hustle income?
- Side income is taxed at your marginal federal bracket plus 15.3% self-employment tax on 92.35% of net profit, plus state tax. Because it stacks on top of W-2 wages, most people should set aside 30% to 40% of side profit.
- Do I have to report side hustle income under $600?
- Yes. The $600 figure only decides whether a platform files a 1099-NEC. Every dollar of profit is reportable, and $400 of net profit triggers self-employment tax.
- Can I lower side hustle tax with expenses?
- Yes. Mileage at $0.70 per mile for 2026, a home office, phone use, software, supplies, and fees all reduce net profit, which cuts income tax and self-employment tax together.
- Will my W-2 withholding cover side hustle tax?
- Usually not. You can increase W-2 withholding on a new Form W-4 instead of making quarterly payments, which is often simpler than filing Form 1040-ES four times.
- Do I need to make quarterly payments for a side hustle?
- If you expect to owe $1,000 or more after withholding, yes — or bump W-2 withholding to reach safe harbor instead.
- Does a side hustle loss reduce my W-2 tax?
- A genuine business loss can offset wage income, but repeated losses on an activity without profit motive can be reclassified as a hobby, which blocks the deduction.
Related calculators
- Side Hustle Tax CalculatorEstimate tax on side-gig 1099 income stacked on your W-2.
- Gig Worker Tax CalculatorFederal + SE + state tax and mileage for any mix of gig platforms.
- Self-Employed Paycheck CalculatorTax to hold back from each 1099 payout and your real take-home.
- Self-Employed Tax EstimatorEstimate federal, SE, and state tax for your full 1099 year.
Related blog posts
- Side Hustle Tax Estimator: 2026 Free Calculator & GuideEstimate 2026 side hustle taxes in seconds. Combines W-2 + 1099 income, mileage, and expenses to show federal, SE, and state tax owed — plus a set-aside %.
- How to Use a Gig Worker Tax Calculator to Get Your 2026 Number RightHow a gig worker tax calculator works in 2026: gross vs net platform pay, the 92.35% SE rule, $0.70/mi mileage, state tax, and the numbers people enter wrong.
- Self-Employed Paycheck Calculator: Building the Pay Stub You Never GetUse a 2026 self-employed paycheck calculator to find the tax to hold back from each 1099 payout and your true weekly, bi-weekly or monthly take-home.
- Tax Calculator for Side Hustle: What a Second Income Actually Costs YouUse a 2026 tax calculator for side hustle income to see federal, self-employment, and state tax when gig earnings stack on top of your W-2 wages.