1099 side-hustle tax calculator
Turn revenue and expenses into a transparent federal, state, and self-employment tax reserve without uploading business records.
Worked examples
Computed by the same engine as the calculator above, on 2026 rules reviewed through 2026-08-09. Use the tool for your own figures.
$15,000 of 1099 profit beside a $60,000 job
Self-employment income carries a tax the W-2 job does not: both halves of Social Security and Medicare, because there is no employer paying one of them. It is charged before income tax and is the figure most often missed.
| Side profit | $15,000 |
| Self-employment tax | $2,119 |
| Deductible half | $1,060 |
| Rate on the side income | 14.1%, before income tax |
Self-employment tax is 15.3% on 92.35% of net profit. Income tax applies on top, at whatever bracket the W-2 job has already pushed you into.
$40,000 of profit, same job
Self-employment tax is close to flat until the Social Security ceiling, so it scales almost linearly — unlike income tax, which climbs. Combined W-2 wages and self-employment income count toward the same Social Security ceiling.
| Side profit | $40,000 |
| Self-employment tax | $5,652 |
| Combined with the W-2 wages | $100,000, against a Social Security ceiling of $184,500 |
Once combined earnings pass $184,500, the Social Security portion stops and only the Medicare portion continues — so the effective rate on further profit falls.
Common questions
Do I have to make quarterly payments?
Usually, once the side income is large enough that withholding from the W-2 job no longer covers the total. The alternative that avoids quarterly filing is to raise withholding on the W-2 job using Step 4(c) of Form W-4, which covers the self-employment liability out of payroll instead.
Is the tax charged on revenue or profit?
On net profit — revenue minus deductible business expenses. That distinction is the single largest lever on this number, and it is why tracking expenses matters more for 1099 income than for W-2 income, where there is no equivalent deduction.
Why is the rate higher than on my salary?
Because you pay both halves of FICA. On a W-2 job the employer pays half of Social Security and Medicare; self-employed, there is no employer, so the full 15.3% falls on you. Half of it is deductible against income tax, which is shown above and partly offsets it.
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