Does this include QBI or deductions?

No. It’s a simplified view. QBI, deductions, and credits can lower income tax; use a full tax tool for precision.

What about additional Medicare surtax?

Not included. High earners may owe an extra 0.9% on wages/SE income above thresholds.

Can I rely on this for filing?

No. It’s for planning. Use professional software or a tax pro for filing.

How do I adjust the Social Security wage base?

Update the wage base constant annually to the IRS limit for accuracy.

Does withholding from my W-2 count?

Yes for your real tax situation, but this tool doesn’t apply withholding. Compare your withholding to these estimates separately.

finance calculator

Side Hustle Tax Calculator

Estimate self-employment tax plus simple income tax on side-hustle profit, with quarterly payment guidance.

Results

Social Security portion: $2,290
Medicare portion: $536
Total self-employment tax: $2,826
Income tax estimate (federal + state): $5,400
Total estimated tax: $8,226
Suggested quarterly payment (4x per year): $2,056

How to use this calculator

Enter net profit (income minus expenses) from your side hustle.
Add W-2 wages to account for the Social Security wage cap.
Set your marginal federal and state rates to estimate income tax.
Review self-employment tax, income tax estimate, and a suggested quarterly payment.

Inputs explained

Net profit: Income minus expenses from the side hustle.
W-2 wages: Used to reduce the remaining Social Security wage base for self-employment tax.
Federal rate: Your marginal bracket; this is a simplified single-rate estimate, not a bracketed calculation.
State rate: Flat estimate of your state marginal rate; include local if applicable.

How it works

Self-employment tax is based on 92.35% of net profit. Social Security applies up to the annual wage base after accounting for W-2 wages; Medicare applies to all SE income.

Income tax estimate here is a simple marginal-rate pass on net profit using your entered federal + state rates.

Quarterly payment = total estimated tax ÷ 4 for planning your 1040-ES payments.

Formula

SE base = Net profit × 92.35%
Social Security = min(SE base, SS cap – W2) × 12.4%
Medicare = SE base × 2.9%
Income tax (simple) = Net profit × (Fed + State rates)
Total = SE tax + Income tax
Quarterly ≈ Total ÷ 4

When to use it

Planning quarterly estimated payments for freelance/side income.
Checking if side income pushes you into higher SE tax before making big purchases.
Quick sanity check before tax season; not a full return.

Tips & cautions

Actual tax returns use brackets, deductions, QBI, credits, and phaseouts—this is a quick snapshot.
Update the Social Security wage base annually for accuracy.
If you also have withholding from W-2 income, you may need smaller quarterly payments; run a full tax projection to be sure.
Simplified: single marginal rates for income tax; no QBI, deductions, credits, additional Medicare surtax, or AMT.
Social Security wage base is a static placeholder; confirm current-year limit.
Not a substitute for a full tax return or professional advice.

Worked examples

$20k profit, no W-2, 22% fed, 5% state

SE base ≈ $20,000 × 92.35% = $18,470
SS tax ≈ $18,470 × 12.4% = $2,292
Medicare ≈ $536; SE total ≈ $2,828
Income tax ≈ $20,000 × 27% = $5,400
Total ≈ $8,228; Quarterly ≈ $2,057

$30k profit, $120k W-2, 24% fed, 5% state

Remaining SS base ≈ 168,600 − 120,000 = 48,600
SE base ≈ $27,705; SS taxable = min(27,705, 48,600) = 27,705
SS tax ≈ $3,437; Medicare ≈ $803; SE total ≈ $4,240
Income tax ≈ $30,000 × 29% = $8,700
Total ≈ $12,940; Quarterly ≈ $3,235

Deep dive

Estimate side-hustle self-employment tax and simple income tax in minutes. Enter net profit, W-2 wages, and tax rates to see SE tax, income tax, and suggested quarterly payments.

Use this as a planning snapshot; run a full tax projection for deductions and credits.

FAQs

Does this include QBI or deductions?: No. It’s a simplified view. QBI, deductions, and credits can lower income tax; use a full tax tool for precision.
What about additional Medicare surtax?: Not included. High earners may owe an extra 0.9% on wages/SE income above thresholds.
Can I rely on this for filing?: No. It’s for planning. Use professional software or a tax pro for filing.
How do I adjust the Social Security wage base?: Update the wage base constant annually to the IRS limit for accuracy.
Does withholding from my W-2 count?: Yes for your real tax situation, but this tool doesn’t apply withholding. Compare your withholding to these estimates separately.

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Informational only. Not tax advice. Does not account for QBI, deductions, credits, AMT, or additional Medicare surtax. Consult a tax professional for your situation.