Short answer: A single driver with $25,000 of app earnings, $6,000 of tips and 12,000 business miles owes about $4,035 for 2026, about $13.02 of every $100 earned. The $8,910 mileage deduction and the tips deduction (rideshare and app delivery drivers qualify; final rules) bring federal income tax to $0; the rest is self-employment tax and state tax. Full guide: Gig Worker Taxes 2026: The Complete Guide for Delivery and Rideshare Drivers.
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Gross earnings$25,000 + $6,000 tips = $31,000
- Mileage deduction12,000 mi × 74.25¢ average = $8,910
- Net profit$31,000 − $8,910 − $600 other costs = $21,490
- Self-employment tax$21,490 × 92.35% × 15.3% = $3,036
- Adjusted gross income$21,490 − half of SE tax ($1,518) = $19,972
- Standard deduction and tips deduction$19,972 − $16,100 − $6,000 = $0
- Federal income tax$0 − $0 business income deduction = $0 taxable → $0
- State income tax (5%)$19,972 × 5% = $999
- Total tax$3,036 + $0 + $999 = $4,035
- Each quarterly payment$4,035 ÷ 4 = $1,009
Each step is rounded to the dollar for display; the calculator carries the cents through.
How this calculator works
Apps pay drivers as independent contractors, so nothing is withheld. You owe two federal taxes on your profit: self-employment tax, 15.3% of 92.35% of profit for Social Security and Medicare (IRS: Self-employment tax (Social Security and Medicare taxes)), and income tax at the 2026 brackets after deductions (IRS: 2026 tax inflation adjustments (brackets and standard deduction)).
Profit is what's left after the mileage deduction (72.5¢ a mile through June 30, 2026, 76¢ from July 1) and your other business costs, like your phone, bags, tolls and parking. Income tax then gets three more deductions: half of the self-employment tax, the standard deduction for your filing status, and the deduction for qualified tips, up to $25,000 for 2025 through 2028, which rideshare and app-based delivery drivers can take. Tips still count for self-employment tax. The 20% business income deduction applies to whatever profit is still taxable.
If you have a W-2 job or a spouse's income, enter it as other household income; it decides your bracket. State tax is a flat rate you choose. The result splits the total into four quarterly payments, generally due in April, June, September and January when you expect to owe $1,000 or more (IRS: Estimated taxes).
2026 tax on gig income by earnings and miles
| App earnings | Tips (20%) | Tax at 15,000 mi | After tax | Tax at 30,000 mi | After tax |
|---|---|---|---|---|---|
| $15,000 | $3,000 | $885 | $17,115 | $0 | $18,000 |
| $25,000 | $5,000 | $2,580 | $27,420 | $1,007 | $28,993 |
| $35,000 | $7,000 | $4,678 | $37,322 | $2,702 | $39,298 |
| $45,000 | $9,000 | $7,106 | $46,894 | $4,704 | $49,296 |
| $55,000 | $11,000 | $9,659 | $56,341 | $7,132 | $58,868 |
| $65,000 | $13,000 | $12,233 | $65,767 | $9,665 | $68,335 |
| $75,000 | $15,000 | $14,807 | $75,193 | $12,240 | $77,760 |
Single, no other income, no state tax, half the miles before July 1, $600 of other costs. "After tax" is earnings plus tips minus tax, before gas and car costs.
Worked examples
Part-time driver with a day job
$12,000 of app pay and $3,000 of tips on top of a $48,000 W-2 job, 6,000 business miles, 5% state tax.
| Result | |
|---|---|
| Self-employment tax | $1,448 |
| Federal income tax on gig income | $554 |
| Total, and each quarter | $2,478 · $619 |
Full-time driver, married filing jointly
$48,000 of app pay and $14,000 of tips, 30,000 business miles, no other household income, 4% state tax.
| Result | |
|---|---|
| Self-employment tax | $5,443 |
| Federal income tax | $0 |
| Total, and each quarter | $6,876 · $1,719 |
Using your result
Turn the result into a habit: move the per-$100 amount into a separate savings account every time a payout lands, and pay the quarterly amount from it before each deadline. Quarterly Estimated Taxes: 2026–2027 Due Dates and How to Pay has this year's dates.
The biggest thing you control is the mileage deduction. Logging every business mile, including the empty ones between orders, can lower your tax more than anything else; see what yours is worth in the mileage deduction calculator.
What it doesn't cover
- It's an estimate for planning. It leaves out credits, extra deductions for age 65 and over, and itemizing.
- With other wages, Social Security already paid through a job can lower self-employment tax; this doesn't adjust for that.
- State tax is a flat rate you enter, and many states tax tips.
- It assumes the standard mileage rate for your car.
- NetTakeHome isn't affiliated with any app.
Read more
- Gig Worker Taxes 2026: The Complete Guide for Delivery and Rideshare Drivers
- DoorDash Taxes 2026: What Every Dasher Needs to Know
- Uber and Lyft Driver Taxes: A 2026 Guide for Rideshare Drivers
- No Tax on Tips for Gig Drivers: How the Deduction Works
Frequently asked questions
How much tax do I pay on $30,000 of gig income?
For a single driver with $30,000 of app pay, $6,000 of tips, 15,000 business miles and no state tax, about $3,433 for 2026. Most of it is self-employment tax, because the mileage and tips deductions cut income tax sharply.
Do gig drivers pay taxes on tips?
Tips are income, and self-employment tax applies to them. For federal income tax, rideshare and app-based delivery drivers can deduct up to $25,000 of qualified tips a year for 2025 through 2028, phased out at higher incomes. See No Tax on Tips for Gig Drivers: How the Deduction Works.
Will I get a 1099 from the apps?
Maybe. For 2026 payments, a 1099-NEC is generally required at $2,000 or more, and a 1099-K at $20,000 and 200 transactions federally, with lower thresholds in many states. Your income is taxable either way.
How much should a delivery driver set aside for taxes?
Often 15–25% of what you earn, depending on your miles and other income. With the starting numbers here it's $13.02 of every $100.
Do I have to pay quarterly taxes?
If you expect to owe $1,000 or more for the year, the IRS generally expects estimated payments four times a year (IRS). The calculator shows each payment.
Sources
- IRS: Self-employment tax (Social Security and Medicare taxes)
- IRS: 2026 tax inflation adjustments (brackets and standard deduction)
- IRS: Estimated taxes
- IRS: 2026 business standard mileage rate (January announcement)
- IRS Announcement 2026-11 (Internal Revenue Bulletin 2026-29): 76¢ from July 1, 2026
- Federal Register: Final rules on qualified tips and tipped occupations (April 2026)
- IRS Gig Economy Tax Center
Reviewed against IRS sources: October 2026 · Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice. NetTakeHome is not affiliated with DoorDash, Uber, Lyft or Instacart.