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Money Decisions AU
Updated for 2026

Side Hustle Tax Calculator Australia

Earning extra income can increase your tax significantly. This calculator helps you estimate how much tax you will pay on side hustle income — and what you will actually take home.

How Side Hustle Tax Works in Australia

Australia uses a marginal tax system. Your side hustle income is added on top of your main salary, which means it is taxed at your highest applicable rate — not at the lowest bracket. That's why a $10,000 side hustle can feel much smaller after tax.

  • All income must be declared, even from cash or app-based work.
  • Side income stacks on top of your salary.
  • Your effective tax on side income usually matches your top bracket.

How to Reduce Tax on Side Income

  • Claim legitimate expenses related to earning that income.
  • Track income and expenses properly throughout the year.
  • Understand which deductions apply to your specific activity.
  • Set aside tax as you earn so you aren't caught short at tax time.

Example Calculation

Main salary: $80,000

Side hustle income: $10,000

Expenses: $0

Total income becomes $90,000, which sits in the 30% bracket. The full $10,000 of side income is taxed at 30% — about $3,000 in extra tax — leaving roughly $7,000 as take-home from your side hustle.

When This Calculator Is Useful

  • Freelancing or contract work alongside a salary.
  • Online income (e-commerce, content, affiliate, digital products).
  • Driving for ride-share or delivery platforms.
  • A second job or weekend gig.

FAQ

How is side hustle income taxed in Australia?+

It is added to your total income and taxed at your marginal rate.

Do I need to declare side income?+

Yes, all income must be declared.

Can I reduce tax with expenses?+

Yes, legitimate expenses may reduce taxable income.