Side Hustle Net Income & Tax Calculator
Estimate your 2025-2026 self-employment taxes, Social Security contributions, and net take-home pay. This tool accounts for the latest IRS inflation adjustments, standard deductions, and the SECA tax cap.
Effective Tax Rate: 0%
Side Hustle Tax Strategy: Maximizing Your 2026 Net Income
Starting a side hustle is a powerful way to achieve financial independence, but without a clear understanding of Self-Employment Tax (SECA) and Federal Income Tax brackets, you might be blindsided during tax season. In 2026, tax laws continue to evolve with adjusted standard deductions and Social Security wage bases.
Understanding the 2026 Social Security Wage Base
For the 2026 tax year, the Social Security wage base is projected to rise to approximately $184,500. This is a critical threshold for high-earning side hustlers. Once your combined W-2 wages and adjusted net self-employment earnings surpass this limit, you no longer pay the 12.4% Social Security portion of the SE tax on additional income, though the 2.9% Medicare portion remains uncapped.
How the 92.35% Factor Works
The IRS doesn't tax 100% of your net profit for self-employment tax. Instead, you multiply your net profit by 92.35%. This adjustment accounts for the fact that employers (in this case, you as the business owner) get to deduct half of the payroll taxes. This "employer-equivalent" portion is also a deduction when calculating your Adjusted Gross Income (AGI).
Common Deductible Expenses (Schedule C)
- Home Office: $5 per square foot (up to 300 sq ft) using the simplified method.
- Marketing: Google Ads, social media marketing, and business cards.
- Software: Subscriptions like Adobe, Slack, or bookkeeping tools.
- Travel: 50% of business meals and the standard mileage rate for business trips.
Quarterly Estimated Payments
If you expect to owe more than $1,000 in taxes, the IRS requires quarterly estimated payments. Failure to pay these on time (April, June, September, January) can lead to underpayment penalties. Use this calculator to estimate your annual liability and divide by four to find your quarterly target.