Single-filer estimate. State tax uses simplified gross-based brackets — useful for benchmarking, not filing.
Your day job (for marginal tax)
Why the side hustle pays less than it looks
Self-employment tax is the killer. As a W-2 employee, your employer pays half your FICA. As a 1099 worker, you pay both halves — an effective ~14.13% right off the top of net profit, before any income tax. (Half is deductible federally, which softens it slightly.)
On top of that, side-hustle income stacks on your day job. Your marginal federal + state rate is usually higher than your day-job effective rate. A $30K side income for a $90K W-2 earner often nets ~50–60% — meaningful, but not the headline number.
Sources: IRS 2026 inflation adjustments (Rev. Proc. 2025-32, post-OBBBA), IRS Notice 2025-67 (retirement limits), IRS Rev. Proc. 2025-19 (HSA limits), SSA 2026 COLA fact sheet, state revenue departments, Tax Foundation 2026 State Individual Income Tax Rates. Estimates only — not tax advice.
PeakWorth provides educational projections, not financial advice. We are not a registered investment advisor, broker-dealer, tax preparer, or attorney. Consult a licensed professional before making major financial decisions. Read full disclosures