Taxes

Your side gig probably owes more tax than your paycheck covers.

Enter your W-2 salary and what you made on the side. We show the extra tax the side income adds — SE tax plus the bump in federal income tax — and how much to set aside each quarter.

2026 IRS numbers
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Tax and payroll data last updated: July 2026. Sources & methodology

Your numbers

$

Box 1 wages from your employer — withholding already comes out of this.

$

Extra money from a side gig, consulting, or platform payouts before expenses.

$

Costs tied to the side work — supplies, mileage, software, platform fees.

Side income may qualify for the 20% pass-through deduction — leave on unless you know you don't.

Extra 2026 tax from side income
$3,201

Set aside about $800 per quarter on top of W-2 withholding.

Net side income
$10,500
Self-employment tax on side income
$1,484
Extra federal income tax
$1,717
Combined tax (W-2 + side)
$15,271
Quarterly on side income
$800
30%rate on side income
  • SE tax14%
  • Extra income tax16%
  • Side take-home70%

Shows extra federal tax from side work when you also have W-2 wages. Assumes single filer, standard deduction. Your employer already withholds on the W-2 — this is what to pay yourself on the side. State tax not included.

How this is calculated

Side income from freelancing, consulting, or platform work is self-employment income. Even if your day job withholds tax, the IRS still expects SE tax (15.3% on net side earnings) and additional income tax on the side profit. We compare your combined bill to what you would owe on W-2 wages alone — the difference is what your side gig costs in tax.

SE tax applies to 92.35% of net side income. Social Security caps at $184,500 in 2026 across all jobs combined — if your W-2 already hit the cap, less side income faces the 12.4% Social Security piece. This calculator models the typical case where side income adds on top of W-2 wages. Federal brackets use the $16,100 standard deduction and optional 20% QBI deduction on qualified side income.

Formula
Side tax = (W-2 + side total) − (W-2 only total)

Related calculators

Common questions

Withholding on your W-2 only covers tax on that paycheck. Side income has no employer withholding, and it triggers self-employment tax on top of regular income tax. The IRS expects you to pay that yourself — usually through quarterly estimated payments.
1099-NEC payments, freelance client work, consulting on the side, Etsy or eBay profit, driving for a platform, and similar self-employment. Hobby income follows different rules — this tool assumes a real side business with deductible expenses.
Use the quarterly number on your result, divided by how many side deposits you expect that quarter. A rough rule: 25–30% of each side payment into a separate savings account, then adjust using this calculator once a quarter.
It can. Brackets are marginal — side profit stacks on top of your W-2 wages for income tax. That is why the extra federal tax line often surprises people who thought their paycheck withholding already handled everything.
Use our 1099 tax calculator instead — it is built for contract-only earners. This page is for the common case: day job plus a side gig.