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Taxes

Taxes when you drive for gig apps.

You're self-employed in the eyes of the IRS — which sounds scary but is mostly good news. The mileage deduction wipes out most of your tax bill if you track it.

The deduction is the prize — see what yours is worth

Adjust the inputs to your own situation. Numbers recalculate live.

Your numbers

Defaults to a typical full-time gig driver: 30K business miles, $48K gross. Adjust to your own situation. 2026 IRS rate: 67¢/mile.

What this saves you
$7,497

Approximate federal tax avoided by claiming the mileage deduction at a 22% marginal rate + 15.3% SE tax.

Mileage deduction$20,100
Net taxable income$27,060
Estimated federal taxes$10,093
Take-home (federal only)$37,907

The basics every gig driver has to know

1099 contractor, not employee

Every platform sends a 1099-NEC at year-end if you made $400+. No tax withheld — you owe it directly to the IRS.

Self-employment tax is 15.3%

Social Security + Medicare on every dollar of net gig income, on top of regular federal income tax.

Quarterly estimated taxes

If you'll owe more than $1,000, the IRS expects payments Apr 15, Jun 15, Sep 15, Jan 15. Set aside 25–30% of every gig dollar.

Mileage deduction is the prize

67¢/business mile in 2026. A typical 30K-mile gig year = $20,100 in deductions. Biggest tax break in the gig.

What you can deduct

Mileage

67¢/mile for 2026 — must track to deduct.

Phone bill

Business-use percentage of your monthly bill (usually 30–70%).

Phone mount + charger

Anything bought specifically for driving.

Hot bags / coolers

Insulated bags, drink carriers, anything for keeping food at temp.

Tolls + parking

Tolls during deliveries are deductible. Citations are not.

Car washes

Especially relevant for rideshare.

Mileage tracking apps

If you don't track miles, the IRS doesn't give you the deduction. Pick one on day one.

Free

Stride

Auto-tracks drives in the background. Zero learning curve. Best free option.

Paid

Everlance

More automatic categorization. Worth it once you're full-time.

Paid

MileIQ

Swipe left/right to classify drives. Reliable. Subscription required.

All-in-one

Hurdlr

Mileage + invoicing + tax estimates. Best if you have multiple income streams.

Multi-app

Solo / Gridwise

Pulls earnings from each platform and combines them. Great for multi-appers.

How to file

TurboTax Self-Employed

Easiest if you've used TurboTax before. Walks you through Schedule C.

FreeTaxUSA

Much cheaper than TurboTax. Same forms.

H&R Block Self-Employed

If you want in-person help available.

A CPA who knows gig

Worth it once you're earning $40K+. Saves more than they cost.

Get your personalized starter kit →

Calculator is for general illustration only — not tax advice. State income tax not included. Consult a CPA for your specific situation.