Side Hustle Tax Calculator – Finance Blueprint AU

2026/27 · Freelance, Uber, Etsy, Airbnb — see the extra tax you owe and what to set aside

Your Income Details

Primary Job Annual Salary (PAYG)

Your gross employment salary from your employer

Side Hustle Annual Income i

Enter income excluding any GST you collect

Business Expenses i

Include phone, internet, equipment, fees, home office costs

I have a HECS/HELP debt i

Tax on Side Hustle

Income Summary

Primary salary —

Side hustle income —

Business expenses (deductible) —

Side hustle taxable income —

Total combined taxable income —

Tax Impact

Total tax on combined income —

Tax on salary alone —

Extra tax owed on side hustle —

Extra HECS/HELP repayment —

Total extra to set aside —

Marginal rate on side hustle (before 2% Medicare Levy) —

Quarterly Tax Instalments i

Set aside per quarter

—

Set aside per week

—

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Driving for Uber, DiDi or Ola? Ride-sourcing and taxi drivers must register for GST from their first trip, whatever they earn — the $75,000 threshold doesn’t apply. Food or parcel delivery on its own isn’t ride-sourcing, so the normal threshold applies.

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2026/27 tip: Small businesses (including sole traders) can immediately deduct eligible assets costing less than $20,000 each, rather than depreciating them, if the asset is first used or installed ready for use in the year. Keep your receipts.

➜ See your full tax picture

Why side hustle income is taxed at your marginal rate

The Australian tax system treats all income as a combined total. Because your employer has already been withholding tax as if your salary is your only income, your side hustle income is taxed at whatever rate sits on top of your existing income — your marginal rate. For someone on $80,000, that means their next dollar is taxed at 30% (not from zero).

Side hustle income is not taxed at source — no one withholds PAYG on your behalf. This means you’re responsible for setting money aside yourself. A simple rule: put aside your marginal rate plus the 2% Medicare Levy (about 32% at an $80,000 salary) of every dollar of side hustle profit into a separate savings account each quarter. If you have a HECS/HELP debt, turn on the switch above to include the extra repayment.

You can deduct any genuinely business-related expenses — phone and internet (work-use portion), software subscriptions, equipment, home office costs (fixed rate or actual), vehicle use, platform/marketplace fees, professional development, and more. The $20,000 instant asset write-off (per asset, for small businesses) lets you deduct eligible business purchases immediately in 2026/27.

Watch: how much tax your side hustle will cost

Frequently asked questions

Do I need an ABN for my side income?

If you are carrying on a business, you generally need an ABN. Whether regular side income counts as a business or a hobby depends on your circumstances, so check the ATO guidance or ask a registered tax agent.

Can I claim expenses against my side income?

Generally yes, for genuine costs directly related to earning that income. Keep records such as receipts, and keep business and personal spending separate. The expenses field shows how deductions change the tax owed.

Why set money aside each quarter?

Side income usually has no tax withheld, so the tax is due when you lodge your return, which can be a surprise. Setting aside a share of what you earn spreads the cost. If you are registered for GST you will also have BAS obligations, so see the GST calculator.

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General information only, not tax or financial advice. Figures are estimates based on 2026/27 ATO rates and thresholds. Page last updated: October 2026. Check ato.gov.au or speak to a registered tax agent before making decisions. See our disclaimer & privacy page.