Glossary
What Is Self-Employment Tax?
Self-employment tax covers Social Security and Medicare for people who work for themselves. Many side hustles trigger it on net profit.
Last updated June 2, 2026
Planning, not filing
A common rough planning rate for self-employment tax is about 15.3 percent of net profit, before income tax. Your real number depends on your full tax picture.
Sidequity calculators let you add a combined tax reserve. That is a placeholder you control, not a filing calculation.
Frequently asked questions
Is this financial advice?
No. These are plain definitions for planning. Confirm tax and legal details with a qualified professional.
Why does this matter for side income?
Side hustles fail planning when people mix up gross, net, fees, and hours. Clear terms fix that.
Last updated June 2, 2026. All resources.