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SailsAndShore
Free tool · 1099 earners

Side Hustle Tax Reserve Calculator

Type your monthly income. See what to set aside.

The IRS wants ~30%. Most side hustlers set aside 0%.

Side hustle income
Also earning (W-2)
Common deductibles

Equipment · software subscriptions · mileage (67¢/mi in 2026) · home office (sq ft %) · phone/internet (business %) · professional fees.

Recommended reserve
Monthly to set aside$1,140
Annual total tax owed$13,677
As % of gross28.5%
Breakdown
Self-employment tax$5,875
Federal income tax (side)$7,802
Net side income after tax$24,723/yr

State tax not included, add your state rate if not in TX, FL, TN, WA, NV, SD, AK, WY, NH.

How it works

1099 income doesn't withhold taxes. That means every dollar you earn is 100% yours to spend, until April, when you owe 22-30% of it. This calculator estimates the amount to set aside monthly so tax day is boring instead of catastrophic. Uses 2026 federal brackets + 15.3% self-employment tax.

  • 01**Monthly gross**: what customers pay you before any expenses
  • 02**Monthly deductibles**: business expenses that lower taxable income (equipment, mileage, home office %, subscriptions)
  • 03**Federal tax bracket**: estimated based on your total annual income
  • 04**SE tax**: 15.3% self-employment tax applies to net earnings (Social Security + Medicare)

Rule of thumb: set aside 25-30% of GROSS monthly income for taxes if you're solo and unincorporated. Higher earners (>$100k net) closer to 35%. This calculator gives a tighter estimate based on your actual bracket.

When you're ready for the full workbook

Side Hustle Income Expense Tracker

Multiple income streams, time-per-hustle log, quarterly tax estimates, and an ROI comparison, the second job, on record.

See the full $8.63 workbook →

Excel + Google Sheets · Instant download · 30-day refund