How to Estimate Your 1099 Gig Worker Taxes
If you deliver for DoorDash or Instacart, drive for Uber or Lyft, sell on Etsy or freelance, the IRS treats you as self-employed. Nobody withholds tax from your payouts, so you report your profit on Schedule C, pay self-employment tax on it, pay federal and state income tax, and send the money to the IRS in quarterly estimated payments. This calculator turns your earnings, miles and expenses into the four numbers that matter: net profit, self-employment tax, income tax and the amount to set aside each quarter.
Self-employment tax = Net profit × 92.35% × 15.3% (12.4% Social Security up to $184,500 + 2.9% Medicare)
Taxable income = Net profit − ½ of SE tax − Standard deduction − QBI deduction
Quarterly set-aside = (SE tax + Federal tax + State tax) ÷ 4
How the Standard Mileage Rate Deduction Works
8,000 miles × $0.76 = $6,080
Business miles are the miles you drive for your work, such as the drive to a restaurant to pick up an order and on to the customer. Ordinary commuting does not count, so keep a mileage log with the date, miles and purpose of every trip. The mileage deduction lowers your net profit, which reduces both self-employment tax and income tax. Parking and tolls can be deducted on top of it, but you cannot also deduct gas or repairs for the same vehicle.
Step-by-Step Worked Example
Scenario: a single DoorDash and Uber driver in Texas with $15,000 in gross earnings, 8,000 delivery miles and $500 of other expenses, and no other income.
- Mileage deduction: 8,000 × $0.76 = $6,080.
- Net profit: $15,000 − $6,080 − $500 = $8,420.
- Self-employment tax: $8,420 × 92.35% = $7,776, and $7,776 × 15.3% = $1,190.
- Half of the SE tax ($595) is deductible, leaving adjusted income of about $7,825.
- Federal income tax: that is below the $16,100 standard deduction, so taxable income is $0 and the federal bill is $0. Texas has no state income tax.
- Quarterly set-aside: $1,190 ÷ 4 = about $297, roughly 7.9% of gross earnings. Net take-home pay is $15,000 − $6,080 − $500 − $1,190 = $7,230.
Without the mileage deduction the same driver would owe about $2,049 in self-employment tax, roughly $859 more.
Working More Than One Gig?
Want a platform-specific estimate? Try the DoorDash Tax Calculator, Uber Driver Tax Calculator, Lyft Driver Tax Calculator, Instacart Shopper Tax Calculator or Etsy Seller Tax Calculator, each with defaults, deductions and FAQs for that platform. If you work for more than one app, enter your combined earnings and miles here, because your self-employment tax is based on total profit. For a plain-English walkthrough of 1099 status, the mileage rate and quarterly deadlines, read our Complete Gig Worker Tax Guide for 2026. For the combined picture across every app, use our Multi-Platform 1099 Tax Calculator. To plan your payments and your biggest deduction, try the Quarterly Tax Deadline Calculator and the Mileage Deduction Calculator.
Frequently Asked Questions
Platforms typically report contractor earnings on Form 1099-NEC or 1099-K depending on your gross volume and state thresholds; check your platform dashboard for official documents. A Form 1099-NEC reports payments for services made directly to you (the long-standing threshold is $600, scheduled to rise to $2,000 for payments made after 2025). A Form 1099-K reports payments processed by a third-party network or marketplace and shows gross amounts with no expenses netted out; at the federal level it generally applies once payments pass more than $20,000 in gross payments and more than 200 transactions, and some states use lower limits. Either way, all self-employment income is taxable, including tips, even if you never receive a form. See the IRS guidance on understanding your Form 1099-K, Form 1099-NEC and filing information returns.
The four deadlines are April 15 (income earned January 1 to March 31), June 15 (April 1 to May 31), September 15 (June 1 to August 31) and January 15 of the next year (September 1 to December 31). When a date falls on a weekend or holiday it moves to the next business day. You pay with Form 1040-ES, IRS Direct Pay or EFTPS. The calculator above shows your next due date.
Common deductions include business miles (using the standard mileage rate or actual vehicle costs, but not both for the same vehicle), parking fees and tolls on top of the mileage rate, the business-use share of your phone and data plan, insulated delivery bags, phone mounts, dash cams, platform and service fees, supplies and half of your self-employment tax. Ordinary commuting miles are not deductible, and you need a mileage log with the date, miles and purpose of each trip.
The standard deduction shields the first part of your income from federal income tax ($16,100 for single filers and $32,200 for married couples filing jointly in 2026). If gig work is your only income and your net profit is small, you may owe only self-employment tax. If you also have a W-2 job or other income, your gig profit is stacked on top of it and taxed at your higher bracket, and this calculator assumes no other income.
A common rule of thumb is 25% to 30% of net profit, but your own number depends on your profit, state and filing status, so use the percentage shown in the results. To avoid an underpayment penalty, aim to pay at least 90% of this year’s tax or 100% of last year’s tax (110% if your adjusted gross income was above $150,000) through quarterly payments or withholding.
Disclaimer: this calculator provides estimates for educational purposes only and is not financial, tax or legal advice. Consult a qualified professional before making financial decisions.