Tax · Guide

How Much Should I Set Aside For Tax And MediSave On Side-Hustle Income?

Estimate the extra income tax and self-employed MediSave on your side-business profit, and see how much cash to set aside each month.

By Patricia Lin · Reviewed By The WealthMastery Editorial Team

4 Min Read · Updated · Facts Checked On

Card showing S$4,020: How Much Should I Set Aside For Tax And MediSave On Side-Hustle Income?
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Quick Answer

It depends on your net trade income, other income and age. In this example, S$24,000 net trade income means setting aside about S$4,020, or S$335 a month. That is S$1,860 of extra resident income tax plus S$2,160 of self-employed MediSave at age 35. It is a rough first estimate, not your final bill.

The Useful Number: In this example, S$24,000 net trade income (profit) means setting aside about S$4,020 for tax and MediSave, or S$335 a month.

How Is Revenue Different From Profit?

Revenue is what the business earns before expenses. Net trade income is revenue minus the allowable expenses you enter; a loss counts as zero. A business-account payment is not automatically deductible.

Enter yearly figures, with your chargeable income without this business in the base field.

How Much Does An Annual Side Business Need To Set Aside?

Say you have S$60,000 of other chargeable income, and the side business earns S$30,000 with S$6,000 of allowable expenses: S$24,000 of net trade income, adding S$1,860 of income tax and S$2,160 of MediSave at age 35. The tax crosses a band, with S$20,000 taxed at 7% and S$4,000 at 11.5%. MediSave is not income tax, but you need cash ready for both.

From Side Revenue To Money Set AsideThe worked example at age 35, on top of S$60,000 of other chargeable income. The yearly S$4,020 spread over 12 months is about S$335 a month.
From Side Revenue To Money Set AsideSide Revenue S$30,000; then Minus Allowable Expenses − S$6,000; then Net Trade Income (Profit) S$24,000; then Extra Income Tax S$1,860, Self-Employed MediSave S$2,160; then Set Aside A Year S$4,020.S$30,000Side Revenue− S$6,000Minus Allowable ExpensesS$24,000Net Trade Income (Profit)S$1,860Extra Income TaxS$2,160Self-EmployedMediSaveS$4,020Set Aside A Year
  • Side Revenue: S$30,000
  • Minus Allowable Expenses: − S$6,000
  • Net Trade Income (Profit): S$24,000
  • Extra Income Tax: S$1,860
  • Self-Employed MediSave: S$2,160
  • Set Aside A Year: S$4,020

Data as of . Source: IRAS — individual income-tax rates; CPF Board — 2026 MediSave rates for self-employed persons.

Try Your Numbers

Your Monthly Set-Aside For Tax And MediSave

For side income on top of a job, using yearly resident tax bands and the 2026 self-employed MediSave schedule.

Set Aside Each Month

S$335/mth

Extra Income Tax A Year
S$1,860
Self-Employed MediSave A Year
S$2,160

Open The Full Calculator

Rough estimate. See the full tool for assumptions.

Is This Amount Your Final Bill?

The model uses the 2026 self-employed MediSave schedule and yearly resident tax bands. It leaves out some CPF links with a job, deductible MediSave, losses, capital allowances, rebates and platform earnings reported to CPF Board.

Check with IRAS which expenses count and whether a deemed-expense scheme applies.

When Should You Update The Amount?

Keep invoices and expense records, and re-estimate after profitable or quiet months. The monthly number spreads the yearly amount over twelve months; it is not an official payment schedule. Adjust for amounts already paid when bills and notices arrive.

Quick Check

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    Tax on a side business is worked out on revenue.

Try It With Your Numbers

Open the calculator with this guide’s example filled in. Then change the numbers to match your situation.

Open Side-Hustle Tax Tracker →

Frequently Asked Questions

Is Tax Based On Revenue Or Profit?

On profit.

Net trade income here is revenue minus the allowable expenses you enter, and a loss counts as zero. Paying from a business account does not make an expense deductible, so check with IRAS which expenses count.

Why Does The Side-Hustle Estimate Include MediSave?

A profitable side business can mean self-employed MediSave contributions as well as extra income tax.

MediSave goes into your own account and is not income tax, but you need cash ready for both. The model uses the 2026 self-employed MediSave schedule.

Why Is Part Of The Side Income Taxed At A Higher Rate?

In the example, the extra S$24,000 sits on top of S$60,000 of other chargeable income.

It crosses a tax band: S$20,000 is taxed at 7% and S$4,000 at 11.5%.

Is The Monthly Figure An Official Payment Schedule?

No.

The monthly number spreads the yearly amount over twelve months. When bills and contribution notices arrive, compare them and adjust for amounts already paid. Re-estimate after profitable or quiet months.

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Side Hustle And Freelance Tax And MediSave Checklist. The records, set-asides, filing dates and MediSave bills to plan for when you earn self-employed income.

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Sources & Assumptions

Sources checked 12 October 2026. These are examples only. Check the stated assumptions and limits before you use a result.

Rough first estimate of the cash to set aside each year. It is not a tax return or CPF assessment. Check which expenses count, how contributions interact and the official payment dates.

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