When do I need to pay estimated taxes?

If you expect to owe $1,000+ in self-employment and income taxes, pay quarterly (April 15, June 15, September 15, January 15). Missing payments triggers an underpayment penalty. Use IRS Form 1040-ES to calculate quarterly amounts.

What business expenses can I deduct?

Home office (regular exclusive use, simplified method = $5/sq ft up to 300 sq ft). Vehicle mileage (67¢/mile in 2024). Equipment and software (Section 179 immediate expensing). Internet and phone (business-use portion). Professional development. Marketing. Business meals (50%).

Do I need a separate business bank account?

Legally required only for LLCs to maintain liability protection. But practically, a separate account makes bookkeeping, expense tracking, and tax preparation much easier. Open a free business checking account once you earn regularly from your side hustle.

What business structure should I use for a side hustle?

Starting out: operate as a sole proprietor (no setup required). Once earning $30K+/year net: consider an S-corp election, which can reduce SE tax by paying yourself a 'reasonable salary' (7.65% FICA) and taking the rest as distributions (no SE tax). Save $2,000–$5,000/year at $100K net.

Side Hustle Calculator — After-Tax Income from Side Income | KalkWise

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the side hustle calculator — after-tax income from side income?

In short

Side hustle net income = (revenue − expenses) × (1 − self-employment tax rate − income tax rate). $2,000/month revenue with $500 expenses and 22% income tax nets approximately $1,050/month after SE and income taxes.

Calculates your real take-home income from a side hustle after self-employment tax (15.3%) and income tax, showing annual and monthly net income.

How to use this calculator

1Enter monthly revenue from your side hustle.
2Enter monthly business expenses.
3Enter your estimated income tax rate (your marginal bracket from your main job).

The formula

SE tax=net profit×92.35%×15.3%

take-home=net profit−SE tax−income tax

Net Profit = (R − E) × 12; SE Tax = Net Profit × 0.9235 × 0.153; Taxable = Net Profit − SE/2; Income Tax = Taxable × T; Take-Home = Net Profit − SE Tax − Income Tax

R: — Monthly revenue
E: — Monthly expenses
SE: — Self-employment tax rate
T: — Income tax rate

Worked example

The scenario

$2,000/month revenue, $500/month expenses, 22% income tax rate.

gives

The result

Net profit: $18,000/year. SE tax: $2,541. Income tax: $3,397. Total tax: $5,938. Take-home: $12,062/year ($1,005/month).

Common use cases

Know what you'll actually keep from gig or freelance work.
Decide if a side hustle is worth the time investment.
Plan quarterly estimated tax payments.
Compare net income across different side hustle ideas.

Limitations & assumptions

SE tax is calculated on 92.35% of net profit per IRS rules (one-half SE tax is deducted).
Does not model Section 199A 20% QBI deduction available to some self-employed.
Actual income tax depends on how side income stacks on top of main job income.
State self-employment taxes and state income taxes vary.

Frequently asked questions

Self-employed workers pay both the employee (7.65%) and employer (7.65%) portions of Social Security and Medicare, totaling 15.3%. However, you can deduct half of SE tax from your income, effectively reducing it to ~14.1% net cost. Employees only pay 7.65%.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.