Side Hustle Tax Calculator UK 2025-26

Selling on eBay, renting on Airbnb, or freelancing on the side? See exactly how much extra tax you owe on side hustle income — after the £1,000 trading allowance — based on your day-job salary.

How side hustle tax works in 2025-26

Trading Allowance
£1,000 per year tax-free
For self-employment & casual trading income
Taxable side hustle
Income above £1,000
Added on top of employment income
Tax rate
Your marginal rate (20% or 40%)
Stacked on top of existing income
How to pay
Self Assessment tax return
Register by 5 October after tax year ends

£20,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,400 £6,600 17.5% Details →
£10,000 £9,000 -£1,800 £8,200 18.0% Details →
£12,000 £11,000 -£2,200 £9,800 18.3% Details →
£15,000 £14,000 -£2,800 £12,200 18.7% Details →
£20,000 £19,000 -£3,800 £16,200 19.0% Details →

£25,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,400 £6,600 17.5% Details →
£10,000 £9,000 -£1,800 £8,200 18.0% Details →
£12,000 £11,000 -£2,200 £9,800 18.3% Details →
£15,000 £14,000 -£2,800 £12,200 18.7% Details →
£20,000 £19,000 -£3,800 £16,200 19.0% Details →

£30,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,400 £6,600 17.5% Details →
£10,000 £9,000 -£1,800 £8,200 18.0% Details →
£12,000 £11,000 -£2,200 £9,800 18.3% Details →
£15,000 £14,000 -£2,800 £12,200 18.7% Details →
£20,000 £19,000 -£3,800 £16,200 19.0% Details →

£35,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,400 £6,600 17.5% Details →
£10,000 £9,000 -£1,800 £8,200 18.0% Details →
£12,000 £11,000 -£2,200 £9,800 18.3% Details →
£15,000 £14,000 -£2,800 £12,200 18.7% Details →
£20,000 £19,000 -£4,546 £15,454 22.7% Details →

£40,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,400 £6,600 17.5% Details →
£10,000 £9,000 -£1,800 £8,200 18.0% Details →
£12,000 £11,000 -£2,346 £9,654 19.6% Details →
£15,000 £14,000 -£3,546 £11,454 23.6% Details →
£20,000 £19,000 -£5,546 £14,454 27.7% Details →

£45,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£200 £1,800 10.0% Details →
£3,000 £2,000 -£400 £2,600 13.3% Details →
£5,000 £4,000 -£800 £4,200 16.0% Details →
£8,000 £7,000 -£1,746 £6,254 21.8% Details →
£10,000 £9,000 -£2,546 £7,454 25.5% Details →
£12,000 £11,000 -£3,346 £8,654 27.9% Details →
£15,000 £14,000 -£4,546 £10,454 30.3% Details →
£20,000 £19,000 -£6,546 £13,454 32.7% Details →

£50,000 salary — side hustle tax impact

Side hustle income Taxable amount Extra tax owed Net from hustle Effective rate
£1,000 £0 None £1,000 0.0% Details →
£2,000 £1,000 -£346 £1,654 17.3% Details →
£3,000 £2,000 -£746 £2,254 24.9% Details →
£5,000 £4,000 -£1,546 £3,454 30.9% Details →
£8,000 £7,000 -£2,746 £5,254 34.3% Details →
£10,000 £9,000 -£3,546 £6,454 35.5% Details →
£12,000 £11,000 -£4,346 £7,654 36.2% Details →
£15,000 £14,000 -£5,546 £9,454 37.0% Details →
£20,000 £19,000 -£7,546 £12,454 37.7% Details →

Do I need to declare side hustle income?

Yes, if your total side hustle income exceeds £1,000 in a tax year, you must register for Self Assessment and declare it to HMRC. The £1,000 is the trading allowance — a tax-free threshold for casual self-employment income, introduced in 2017. You cannot claim the trading allowance if you're also claiming expenses on the same income.

Side hustle income (eBay, Etsy, Vinted, Airbnb, freelancing, delivery driving, tutoring etc.) is added on top of your employment income. Since your Personal Allowance is already used by your PAYE job, the taxable portion of your side hustle income is taxed at your marginal rate — 20% if your combined income stays below £50,270, or 40% if it pushes you into the higher rate band.

Note: Class 4 NI (6%) also applies to self-employment profit above £12,570, but most side hustles with modest income won't reach this threshold when considered alongside employment income for tax purposes. Each employment and self-employment source is assessed separately for NI.

Related calculators:

Second Job Tax Calculator Self Assessment Guide Self-Employed Tax Calculator Income Tax Rates