Plug in your gig income and miles. We'll estimate your 2026 federal + state + self-employment tax — and how much to save each month so April doesn't sting.
Pay quarterly online at irs.gov/payments/direct-pay. Underpaying triggers a small interest penalty — usually $50–$200 for typical gig incomes — but you won't go to jail.
Most gig drivers should save 25–30% of their net gig earnings (after the mileage deduction). Use this calculator for your personal number. The biggest variable is the mileage deduction — at $0.70/mile in 2026, a driver logging 30K miles deducts $21,000, which can drop net income (and tax) by 50%+.
$0.70 per business mile. You log a mile when you're driving for a delivery, en route to a delivery, or driving home from your last delivery (limited). Apps like Stride, Hurdlr, and Gridwise auto-track. Manually reconstructing miles after the fact rarely catches everything — track all year.
If you expect to owe $1,000+ in federal tax for the year, yes. Skipping quarterly payments and paying everything in April triggers an underpayment penalty (about 8% APR on the unpaid balance, prorated by quarter). For most full-time drivers that's $100–$300 in avoidable penalty.
Only if you use the "actual expense" method. You pick one method (standard mileage OR actual expense) and stick with it. The standard mileage rate ($0.70/mile in 2026) bundles gas, maintenance, depreciation, and insurance — and almost always wins for gig drivers because it's simpler and usually larger. You cannot use both.
15.3% of your net self-employment earnings (Social Security 12.4% + Medicare 2.9%). Half of it is deductible on your federal return. This calculator includes SE tax in the federal estimate.
Tips reported on your 1099 are already in your gig income. Cash tips not reported on the 1099 are still taxable and you should add them to "Total 1099 gig income" above. The IRS does not have a special "gig tip" exemption.