Side Hustle Tax Calculator
Estimate self-employment plus income tax on your freelance or gig income and see what to set aside each quarter.
This calculator runs entirely in your browser. Nothing you type is uploaded or saved.
How to use this tool
This side hustle tax calculator helps freelance and gig workers estimate how much to set aside from 1099 income. Enter the total side income you expect this year, then the business expenses you can deduct (supplies, mileage, software, fees). Add the income tax rate that matches your federal bracket, then press Calculate. The tool nets your income against expenses, applies the self-employment tax, applies your income tax rate, and shows a suggested quarterly set-aside so estimated payments are easier to plan.
How the math works
self-employment tax = (net income x 92.35%) x 15.3%
income tax = net income x your rate
total tax = self-employment tax + income tax
quarterly set-aside = total tax / 4
The self-employment tax of 15.3% covers Social Security (12.4%) and Medicare (2.9%). Only 92.35% of your net earnings is subject to it, which is why the calculator multiplies by that factor before applying the rate. The income tax portion is a flat estimate using the rate you enter; your real bracket may be marginal and tiered, so treat this as a planning number. Dividing the total by four gives the amount to set aside each quarter for estimated taxes.
A real example
Say you earned $20,000 driving and doing freelance design, with $3,000 of deductible expenses. Net income is $17,000. Self-employment tax is $17,000 x 0.9235 x 0.153 = about $2,402. If your income tax rate is 22%, income tax is $17,000 x 0.22 = $3,740. Total estimated tax is roughly $6,142, so you would set aside about $1,536 each quarter and keep around $10,858 as take-home.
Common questions
How much should I set aside for freelance taxes?
A common rule of thumb is 25% to 30% of net side income, but the exact amount depends on your tax bracket. This quarterly estimated tax helper gives a more precise figure by combining the 15.3% self-employment tax with the income tax rate you enter.
What counts as a business expense I can deduct?
Ordinary and necessary costs of running your side hustle, such as supplies, software subscriptions, business mileage, platform fees, and a home-office portion if you qualify. Deducting them lowers your net income, which estimates 1099 tax savings.
When are quarterly estimated taxes due?
For most years the federal due dates fall in April, June, September, and the following January. The IRS expects you to pay as you earn, so setting aside the suggested quarterly amount keeps you from owing a large lump sum or a penalty.
What income tax rate should I enter?
Use the federal bracket that best matches your total taxable income for the year. If you are unsure, many side hustlers in the United States use 12% or 22% as a starting estimate and adjust later.
Does this include state taxes?
No. The calculator covers federal self-employment tax and a federal income tax estimate only. If your state taxes income, add a few extra percentage points to your set-aside to stay safe.
Disclaimer: This tool gives a rough estimate for educational and planning use only. It is not tax advice. Tax brackets, deductions, and credits vary by situation, so confirm your numbers with a qualified tax professional.