Side Hustle Tax Calculator
Earning extra through an ABN, gig work, ride-share, delivery or freelancing? No tax is taken out of that money, so work out how much tax it adds in 2026–27 and how much to put aside.
Tax on your side income
Tax on your side income, 2026–27
$3,488.71
Set aside about 29.1% of your profit, $290.73 a month. You keep $8,511.29.
- Side income (excluding GST)
- $15,000.00
- Expenses
- −$3,000.00
- Profit
- $12,000.00
- Extra income tax, Medicare levy and other charges
- $3,488.71
- Includes small business income tax offset
- −$351.29
- You keep
- $8,511.29
- Tax rate on your next dollar
- 32%
- Your total income
- $82,000
No tax is taken out of side income, so this is the amount your tax return adds for the year. Assumes the right tax is withheld from your job.
Rates checked 12 October 2026 against the ATO · How we calculate · Calculated in your browser; nothing you enter is sent anywhere.
How side income is taxed
Side income is added to your salary and taxed at your marginal rate. There is no separate rate for it. Because your employer only withholds tax from your job, the tax on your side income is added when you lodge your return.
In the example, $70,000 of salary plus $15,000 of side income with $3,000 of expenses gives a profit of $12,000. That adds $3,488.71 of tax and Medicare levy, about 29.1% of the profit.
- On a salary of $40,000, the same profit adds $3,110.89.
- On $130,000, it adds $3,807.37, because more of it falls in a higher bracket.
The small business income tax offset
Sole traders with a turnover under $5,000,000 can claim an offset of 16% of the tax on their business profit, up to $1,000 a year. It is worked out in your tax return. In the example it saves $351.29: without it the tax would be $3,840.
It doesn’t apply to personal services income, such as freelance work where you are paid mainly for your own skills and effort, unless you run a personal services business.
Staying on top of it
- Put aside the set-aside percentage from every payment into a separate account.
- Keep records of income and expenses for 5 years. Only claim the business part of mixed costs such as your car or phone.
- Once you have business income, the ATO may put you into PAYG instalments, so you pay tax quarterly instead of all at once.
- If your side income grows, compare it with contracting full time using the contractor calculator.
Frequently asked questions
Do I have to declare side income if it is small?
Yes, if you are running a business, even a small one: all of it goes in your tax return. Platforms such as ride-share, delivery and short-term accommodation apps report what they pay you to the ATO, so it will be matched against your return (ATO). Money from a genuine hobby isn’t taxed, but a hobby usually means no intention to make a profit and no regular, business-like activity.
Do I need to register for GST?
Once your business turnover reaches $75,000 a year. Ride-share drivers are the exception: they must register for GST from their first trip, whatever they earn (ATO).
Can I claim a loss from my side business against my salary?
Usually not. Under the non-commercial loss rules, a loss from a side business is generally carried forward to offset future profits from that business, unless your income for the year is under $250,000 and the business passes one of the ATO’s tests, such as $20,000 of income a year.