Gig Income Calculator (Self-Employment & Income Tax Estimate)
Estimate your net income after business expenses, self-employment taxes (Social Security & Medicare), and federal income taxes. Helpful for freelancers, independent contractors, and gig workers.
Based on simplified 2024 tax rules. State income tax is not included.
🚗 Gig Income Calculator
(Self-Employment & Income Tax Estimate)
What Is This Calculator For?
If you're earning money from the gig economy—whether you're a freelancer, rideshare driver, food delivery worker, or online service provider—then you're self-employed in the eyes of the IRS.
This Gig Income Calculator estimates how much tax you’ll owe , what portion of your income to set aside, and what your real take-home pay looks like after expenses and taxes.
💡 Perfect for Uber drivers, DoorDash couriers, Fiverr freelancers, Etsy sellers, and anyone with side hustles or full-time independent income.
🧮 How to Use This Calculator
To get started, enter the following:
-
Total Gig Income – Your gross earnings (before expenses).
-
Business Expenses – Any costs related to your gig work (e.g. gas, supplies, fees, phone bill).
-
State of Residence – For accurate state tax estimates.
-
(Optional) Tax Deductions/Credits – Include things like health insurance, SEP IRA, or other deductions if known.
Click “Calculate” to get:
-
Estimated Self-Employment Tax
-
Estimated Federal Income Tax
-
Total Tax Owed
-
Estimated Net Income (Take-Home Pay)
📊 Example
Let’s say:
-
Total Gig Income: $45,000
-
Expenses: $10,000
-
Filing as: Single, Texas (no state income tax)
👉 Your estimated tax might be:
-
Self-Employment Tax: ~$4,950
-
Federal Income Tax: ~$2,200
-
Net Income (after tax): ~$27,850
💡 Why Gig Workers Need This
Most gig workers are paid without tax being withheld— that means it’s up to you to calculate and save for taxes.
Use this calculator to:
-
Understand your true take-home income
-
Avoid nasty tax surprises in April
-
Budget for quarterly tax payments
-
Plan for savings, investments, or retirement
-
Know how much to set aside (typically 25%–30% of income)
📘 Quick Tips for Gig Workers
-
Track All Your Expenses – From mileage to subscriptions, every deduction helps.
-
Save for Taxes Monthly – Don’t wait until year-end. Automate if you can.
-
Consider an SEP IRA or Solo 401(k) – Reduce taxable income and save for retirement.
-
Use Apps to Track Income – QuickBooks Self-Employed, Wave, or a spreadsheet works.
-
Make Quarterly Payments – If you owe over $1,000/year in taxes, the IRS expects quarterly payments.
💬 Common Questions (FAQs)
1. What’s the difference between gross and net income?
-
Gross income is what you earn before expenses.
-
Net income is what’s left after deducting expenses and taxes—aka your “take-home.”
2. What is self-employment tax?
It’s the combined 15.3% tax that covers both the employer and employee sides of Social Security and Medicare. You pay this in addition to federal income tax.
3. Do I need to pay state income tax?
That depends on where you live. Some states (like Texas, Florida) have no income tax, but most do. This calculator factors that in based on your selection.
4. Should I file quarterly taxes?
Yes—if you expect to owe over $1,000 in total tax, you’re generally required to make quarterly estimated payments to avoid penalties.
✅ Final Thoughts
Being your own boss comes with freedom—but also responsibility . Don’t guess your taxes or assume it’ll all work out. Use this Gig Income Calculator to take control of your income, budget better, and keep more of what you earn.
Knowledge is power—and in this case, it’s also more money in your pocket.