California Side Hustle Tax Calculator
Calculate your California state tax (9.30%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
California leads the nation in side hustle activity, with over 4 million residents earning freelance or gig income. Whether you're driving for Uber in LA, selling crafts on Etsy from San Francisco, or freelancing from San Diego, understanding your tax obligations is crucial. The Golden State has some of the highest state income tax rates in the country, ranging from 1% to 13.3%.
How Side Hustle Taxes Work in California
California uses a progressive income tax system with nine brackets. For most side hustlers earning between $10,000 and $50,000 in self-employment income, you'll likely fall in the 6% to 9.3% bracket range. California taxes all income earned within the state, including 1099 and cash payments from gig work.
Key points for California side hustlers: - **Progressive rates**: 1% to 13.3% depending on total taxable income - **Mental Health Services Tax**: Additional 1% on income over $1 million - **No local income taxes**: Unlike some states, CA cities don't add their own income tax - **Franchise Tax Board**: California's tax authority (not the IRS) handles state taxes
What California Side Hustlers Owe
Let's say you're a single filer in California with a $60,000 W-2 job and $15,000 in side hustle income from freelance graphic design, with $2,000 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $13,000 - Federal SE tax (15.3% of 92.35%): ~$1,839 - Federal income tax on side income: ~$2,860 (22% bracket) - California state tax: ~$1,209 (9.3% bracket) - **Total additional tax: ~$5,908**
This means roughly 45% of your net side hustle income goes to taxes. The good news? You can deduct half of SE tax and potentially qualify for the 20% QBI deduction.
California Tax Deadlines 2025
California follows federal quarterly estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
California requires estimated payments if you expect to owe $500 or more in state taxes. Use Form 540-ES for state quarterly payments.
Common Deductions for California Freelancers
Common deductions for California freelancers include: - Home office expenses (if you have dedicated space) - Vehicle mileage for business use (67 cents/mile for 2025) - Software subscriptions and tools - Health insurance premiums (self-employed) - Professional development and courses - California does NOT conform to all federal deductions—check FTB guidelines
California Side Hustle Tax FAQ
Do I need to pay California taxes on my side hustle?
Yes, California taxes all income earned by residents, including self-employment income from side hustles, 1099 work, and gig economy jobs like rideshare or delivery.
What is California's self-employment tax rate?
California doesn't have a separate self-employment tax—that's federal (15.3%). However, your side hustle income is subject to California income tax rates of 1% to 13.3% depending on your total income.
Can I deduct my side hustle expenses in California?
Yes, you can deduct ordinary and necessary business expenses from your side hustle income. This reduces both your federal and California taxable income.
Side Hustle Calculators by State
More states coming soon. Use the main calculator for all 50 states.
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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