Self-employment tax, federal & state income tax, deductions — see your real take-home after everything is accounted for.
How your gross side hustle income splits across taxes, expenses, and take-home pay.
Estimates only. Federal tax uses 2025 marginal brackets on the marginal income added by your side hustle. Actual taxes depend on full return, deductions, and credits. Consult a tax professional for accuracy.
Self-employment tax is 15.3% of your net self-employment income (12.4% Social Security + 2.9% Medicare). When you're an employee, your employer pays half. As a self-employed person, you pay both halves. The good news: you can deduct 50% of SE tax from your gross income.
If you expect to owe $1,000+ in federal tax from self-employment, you must pay quarterly estimated taxes by April 15, June 15, September 15, and January 15. Underpaying can result in an IRS penalty. A safe harbor: pay 100% of last year's tax liability (110% if AGI > $150k).
Common deductions include: home office (dedicated space used exclusively for work), mileage (67.5¢/mile in 2025), equipment and supplies, software and subscriptions, professional services, advertising, and a portion of your phone/internet. Keep all receipts — documentation is critical.
A SEP-IRA lets self-employed people contribute up to 25% of net self-employment income (max $70,000 for 2025), tax-deferred. It's one of the best ways to reduce taxable income from self-employment. Solo 401k plans are another option, potentially with higher contribution limits if you have no employees.
Yes — the $600 threshold only determines whether a payer is required to send you a 1099. You are legally required to report all self-employment income to the IRS regardless of whether you receive a 1099. This includes cash, Venmo, PayPal, and any other payment method.
Yes. Side hustle income is added on top of your W-2 income, potentially pushing you into a higher marginal bracket. This is why this calculator asks for your W-2 income — to estimate the marginal rate applied to your self-employment earnings correctly.