Self-Employment Tax Calculator (1099 & Side Hustle)
Estimate what to set aside for quarterly taxes on freelance and side hustle income
By the Monthly Income Booster editorial team · Updated · How we research and fact-check
On this topic
Self-Employment Tax Calculator (1099 & Side Hustle)
Printed 2026-10-27 from billorganizingapp.com/income/calculators/self-employment-tax/ — an estimate for planning, not financial or tax advice.
Estimate only — not tax advice. Confirm with a tax professional.
Keep your budget and bills on track month to month in the free Bill Organizer app.
Side hustle income is not taxed like a paycheck. Nobody withholds anything for you, so the bill arrives all at once unless you set money aside as you earn it. This calculator shows both pieces: self-employment tax and regular income tax.
How Self-Employment Tax Works
You pay 15.3% on 92.35% of your net profit — 12.4% Social Security plus 2.9% Medicare. That is on top of ordinary income tax. Half of the self-employment tax is deductible against your income tax.
The Simple Rule of Thumb
Move 25–30% of every payment into a separate savings account the day it lands. If your bracket is higher or your state taxes income, use 35%.
Quarterly Estimated Payments
If you expect to owe $1,000 or more, the IRS wants payments roughly on April 15, June 15, September 15, and January 15. Paying late adds penalties even if you settle up in April.
Deductions That Actually Move the Number
Mileage, home office square footage, phone and internet percentage, software, supplies, platform fees, and business-use equipment. Track them as you go — reconstructing a year of receipts in April never goes well.
When to Hire Help
Once profit clears roughly $20,000, a one-hour session with a CPA usually saves more than it costs. Below that, good bookkeeping and this calculator get you close.
Comparing with a W-2 job
For wages rather than 1099 income, the take-home pay calculator applies 2026 federal brackets and the employee share of FICA.
You may also find this useful: Weekend Side Hustle Calculator.
Official sources
Tax rules, limits and pay data change. Check the current figures with the primary source before acting on them.
Frequently Asked Questions
How much should I set aside for taxes on side hustle income?+
Most people are safe setting aside 25–30% of net profit. Raise it to 35% if you have a higher-earning day job or live in a state with income tax.
Do I owe self-employment tax on a small side income?+
Self-employment tax kicks in once net earnings reach $400 for the year. Below that you may still owe income tax on the earnings.
Can I lower self-employment tax?+
Yes — it is calculated on profit, not revenue, so every legitimate business expense you track lowers it. An S-corp election can help at higher profit levels, but only once profit is consistently high.
Related Guides
1099 Quarterly Tax Calculator (Self-Employed Estimator)
See what to set aside every quarter so tax season never surprises you
Side Hustle ROI Calculator: Is It Worth Your Time?
Work out what a side hustle really pays per hour once fees, costs, driving and self-employment tax come out
1099 vs W-2 Calculator: Match Your Salary
Compare a contract hourly rate against a salaried job once benefits, time off, and self-employment tax are counted
Weekend Side Hustle Calculator: What Two Days Can Pay
Plan Saturday and Sunday hours against a monthly goal, costs and tax
Freelance Runway Calculator: Can You Quit Yet?
How many months your savings last while your side income grows
Second Income Tax Basics for Side Hustlers
What to set aside, what to track, and what most people get wrong
Browse the whole site
Build Your Personalized Income Plan
Get an AI-generated plan covering all 20 income types in 60 seconds.