Side Hustle Tax Calculator
Updated on 22 Oct 2026 · Checked by Aotob
On $10,000 of side profit you owe about $2,305 in tax.
That is 23% of the profit, on top of your $45,000 salary.
Tax on your side income
$2,305
Over $400 of profit means filing Schedule C and SE. If you will owe $1,000 or more, pay quarterly estimated tax to avoid penalties.
Show the working
Profit = 12,000 − 2,000 = 10,000
Income tax 892 + Self-employment tax 1,413 = 2,305
Tax by side profit
| Profit | Tax | You keep |
|---|---|---|
| 2,500 | 576 | 1,924 |
| 5,000 | 1,153 | 3,847 |
| 10,000 | 2,305 | 7,695 |
| 20,000 | 4,610 | 15,390 |
| 40,000 | 10,044 | 29,956 |
Questions people ask
Do I pay tax on side income?
Yes, on the profit, at your top rate on top of your salary, plus self-employed contributions in some countries (US self-employment tax, UK Class 4 NI, Canada’s double CPP).
Is there a tax-free amount?
In the UK, the £1,000 trading allowance covers small side businesses. In the US you must report self-employment profit of $400 or more.
How much should I put aside?
Roughly the rate shown, from every payment. In the US, pay quarterly estimates if you expect to owe $1,000 or more.
Updated 22 Oct 2026Source: Each country’s 2026 tax rules, checked October 2026Checked by AotobEstimate: default settings; US federal only, with the 20% QBI deduction.Report an issue