Side Hustle Tax Calculator 2025
Calculate your self-employment taxes, quarterly payments, and available deductions. Perfect for freelancers, gig workers, and anyone with 1099 income using 2025 tax rates.
Income Information
Total revenue from 1099s
Regular job salary
Taxes already withheld
Or calculate below
Business Deductions Calculator
Rent, utilities, insurance
2025 rate: $0.655/mile
Tools, materials, computers
Business portion only
Apps, tools, platforms
Ads, website, promotion
Courses, books, conferences
Insurance, legal, etc.
Understanding Side Hustle Taxes in 2025
Side hustle income is typically considered self-employment income, which means you'll pay both income tax and self-employment tax. Understanding these taxes and available deductions can save you thousands of dollars.
Key Tax Components
Self-Employment Tax (15.3%)
- • 12.4% for Social Security (on first $168,600 in 2025)
- • 2.9% for Medicare (no limit)
- • Additional 0.9% Medicare tax on income over $200K/$250K
- • Applied to 92.35% of net self-employment income
Federal Income Tax
- • Based on your total income and filing status
- • 2025 standard deduction: $14,600/$29,200
- • QBI deduction up to 20% of qualified income
- • Progressive tax brackets: 10% to 37%
Essential Business Deductions
Home Office
Deduct expenses for space used exclusively for business. Simplified method: $5 per sq ft up to 300 sq ft.
Vehicle Expenses
2025 mileage rate: $0.655/mile for business driving, or deduct actual vehicle expenses.
Equipment & Supplies
Computers, software, tools, and supplies used for business are fully deductible.
Quarterly Payment Schedule 2025
Q1 2025
Due: April 15, 2025
Q2 2025
Due: June 16, 2025
Q3 2025
Due: September 15, 2025
Q4 2025
Due: January 15, 2026
Record Keeping Best Practices
- Separate business and personal expenses with dedicated accounts
- Use apps like QuickBooks, FreshBooks, or Mint for expense tracking
- Keep receipts for all business expenses (digital copies are acceptable)
- Track mileage with apps like MileIQ or Everlance
- Maintain records for at least 3 years (7 years for significant underreporting)
Advanced Tax Strategies
Retirement Contributions
Contribute to a SEP-IRA (up to 25% of net self-employment income) or Solo 401(k) (up to $69,000 in 2025, or $76,500 if 50+) to reduce taxable income.
Business Structure
Consider forming an LLC or S-Corporation if your side hustle income exceeds $50,000-$60,000 to potentially reduce self-employment taxes.
Health Savings Account
If you have a high-deductible health plan, contribute to an HSA. Self-employed individuals can also deduct health insurance premiums.
Important Tax Disclaimer
This calculator provides estimates based on 2025 tax law and general assumptions. Actual tax liability may vary based on your specific situation, state taxes, and other factors. The QBI deduction calculation is simplified - actual deduction may be limited by income thresholds and business type. Consult with a qualified tax professional for personalized advice and accurate tax planning.