What this calculator does
If you drive for a rideshare or delivery app, sell things online, freelance or run any other side hustle, what you earn is taxable income, and nobody takes tax out of it for you. This calculator estimates what to set aside for 2026: self-employment tax, the extra federal income tax your side income adds on top of your job, an optional state tax, and the four estimated payments the IRS expects during the year.
How the tax on side income is figured
- Net profit. Gig income minus business expenses and the mileage deduction. This is the number you report on Schedule C. Only the profit is taxed, not everything you took in.
- Self-employment tax. You pay both halves of Social Security and Medicare on your own work: 15.3% (12.4% plus 2.9%) of 92.35% of your net profit. You owe it when those net earnings reach $400.
- The W-2 wage base. The Social Security part stops at $184,500 of earnings in 2026, and your W-2 wages count toward that limit first. The 2.9% Medicare part has no limit, and an extra 0.9% Additional Medicare Tax applies above $200,000 of wages and earnings ($250,000 if married filing jointly).
- Deductions. Half of the 12.4% and 2.9% comes off your income, and so does the 20% qualified business income (QBI) deduction, which P.L. 119-21 made permanent.
- Extra income tax. The calculator compares your federal income tax on W-2 wages alone with the tax on wages plus side profit, using the 2026 brackets and standard deduction. Your employer is assumed to have withheld the tax on the wages.
- Amount to set aside. Self-employment tax plus extra income tax plus the state tax from the rate you type. One quarter of it is each estimated payment.
Mileage instead of tracking every car cost
For the car you use for work, you can deduct either actual costs or the IRS standard mileage rate, not both. For 2026 the business rate is 72.5 cents per mile for January 1 through June 30 and 76 cents per mile from July 1, because the IRS raised it midyear for higher fuel prices. That is why the calculator asks for miles in two parts. Commuting does not count, but trips with a passenger or a delivery usually do. Keep a log with the date, trip and miles.
Do I owe tax if I never got a 1099?
Yes. Tax forms only report income; they do not decide whether it is taxable. Gig income counts whether it is $50 or $50,000 and whether it comes from an app, a client or cash.
- Form 1099-K. Payment apps and online marketplaces report payments for goods and services on this form. Under P.L. 119-21 they only have to when your payments are over $20,000 and over 200 transactions. The IRS says this older rule was restored retroactively, so the lower limits of $5,000, $2,500 and $600 never took effect. Card processors report card payments at any amount.
- Form 1099-NEC. For payments made in 2026, a business must send one when it pays you $2,000 or more in the year, up from $600 before. The limit is adjusted for inflation from 2027.
Keep your own records of everything you were paid. Forms can be late, wrong or missing, and the amounts should match what you report.
When to pay: the four due dates
The IRS expects estimated payments if you expect to owe $1,000 or more after withholding and credits. For 2026 the dates are April 15, June 15 and September 15, 2026, and January 15, 2027. The calculator marks the dates that have passed. If you are late, pay as soon as you can. Many people avoid a penalty by paying at least 90% of this year's tax or 100% of last year's (110% if income was over $150,000). Our guide to estimated quarterly taxes has the rules.
What the estimate leaves out
This is a simplified estimate. It assumes the standard deduction and no other income, credits or deductions, and it leaves out local taxes, the tips and overtime deductions, retirement contributions and the home office deduction. The state tax is a flat rate you choose. Above the QBI income threshold the calculator assumes no W-2 wages paid, no business property and not a service business, which can overstate the deduction. A loss is shown as no tax, although it may lower the tax on your other income. This page is general information, not tax advice; the official documents used are listed in the sources below.
Frequently asked questions
Do I have to pay self-employment tax on a small side income?
You owe it when your net earnings from self-employment, which are 92.35% of net profit, reach $400 for the year. Below that there is no self-employment tax, although the income may still count for income tax. This applies even if no payer sent you a form.
Can I deduct my car if I use the standard mileage rate?
You deduct business miles at the IRS rate instead of actual costs such as gas, repairs and insurance for the same car. The rate is 72.5 cents per mile before July 1, 2026 and 76 cents from July 1, 2026. Parking fees and tolls for the work can be added. The IRS has rules on switching methods, so read its standard mileage rates page before you choose.
Will I get a 1099-K for my 2026 side income?
Maybe not. A payment app or marketplace only has to send one when your payments for goods and services are over $20,000 and over 200 transactions for the year. With less you may get no form, but the income is still taxable and still counts toward self-employment tax.