Side Hustle Tax Liability Predictor
Avoid tax-season surprises. Predict your total tax liability based on your gross earnings, business expenses, and tax bracket.
Total revenue before any expenses
Total business-related deductibles
Your federal income tax rate based on total annual income
Your state income tax rate (0% if in a state with no income tax)
What is self-employment tax?
Self-employment (SE) tax is the Social Security and Medicare tax for people who work for themselves. It is 15.3% of your net earnings. This is higher than W-2 employee taxes because as a freelancer, you pay both the employer and employee portions of these taxes.
What are deductible business expenses?
Deductible expenses are costs necessary to run your business, which reduce your taxable profit. Common examples: home office portion (square footage), software subscriptions, marketing/ads, equipment (laptop, camera), transaction fees (Stripe, PayPal), and a portion of your phone/internet. Always keep receipts and a separate bank account for audits.
How do estimated quarterly taxes work?
If you expect to owe $1,000 or more in taxes for the year, the IRS requires you to pay estimated taxes quarterly. If you don't, you may face underpayment penalties. Payments are typically due in April, June, September, and January. Using this calculator helps you estimate how much to set aside each month to avoid surprises.
How does the marginal tax bracket affect my side hustle?
Your side hustle income is added to your primary income. If your day job puts you in the 22% bracket, your first dollar of side hustle profit is taxed at 22%. If your side hustle income pushes you into a higher bracket, only the portion of income within that higher bracket is taxed at the higher rate.