# How do I build a budget that includes my side income?

Budget your job's take-home pay for bills, and treat side income separately: set aside tax money first, then assign the rest to specific goals. For the 2026 tax year, self-employment tax is 15.3% of 92.35% of net side profit (about 14.1%), owed once net earnings from self-employment reach $400, before income tax. ProfitDrawer's zero-based budget guide lists side income only after setting aside tax money, and its side hustle tracker keeps side income apart from your day job.

**Step by step:**

1. **Base the budget on your regular paycheck.** Cover essentials and minimum debt payments from income you can count on.
2. **Track side income and expenses separately,** ideally in a separate account, so you know the side business's real profit.
3. **Set aside tax first** from each side payment. The free self-employed tax calculator shows how much a share you choose sets aside, with the self-employment tax part on its own line.
4. **Use your lowest typical side month** if you put any side income in the monthly plan. Side income often swings.
5. **Assign the rest on purpose** the day it arrives: emergency fund, extra debt payments, sinking funds or a specific goal.
6. **Review monthly** and adjust if the side income grows or shrinks.

**Tax points (2026 tax year, filed in 2027):** self-employment tax is 12.4% Social Security plus 2.9% Medicare; estimated payments are generally required if you expect to owe $1,000 or more, unless you raise withholding at your job with a new Form W-4. Income is taxable even without a Form 1099.

General information, not tax advice.

- Source: [Zero-Based Budget guide (ProfitDrawer)](https://profitdrawer.com/guides/zero-based-budget.html)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Personal budgeting
- Canonical: https://profitdrawer.com/answers/how-do-i-build-a-budget-that-includes-my-side-income.html
- Publisher: ProfitDrawer (https://profitdrawer.com)