Plan the side hustle backwards
Start with what you want the side income to do, such as $1,000 a month toward debt or investing, then work back to the effort it takes. Side income is usually self-employment income, so set aside money for tax: in the US that includes both income tax and roughly 15.3% self-employment tax on net earnings, which is why 25% to 30% is a common set-aside. Platform fees, supplies and mileage come off the top too.
At $30 an hour with 25% for tax and 10% for costs, you keep $19.50 an hour, so $1,000 a month takes about 51 hours, or 12 hours a week.
Common questions
How much tax do I pay on side hustle income?
In the US, income tax plus self-employment tax of about 15.3% on net earnings. Setting aside 25% to 30% is common.
Do I need to pay estimated taxes?
If you expect to owe $1,000 or more for the year, the IRS generally expects quarterly estimated payments.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.