The offer price is not your pay

A new driver sees "$10 for 5 miles" and treats it like cash. Gig apps do not withhold taxes. You get the full amount, then you still owe tax and you still pay for the car.

Gas, tires, brakes, and self-employment tax take a real bite out of that $10. The leftover is what you keep.

The 15.3% self-employment tax

As a 1099 driver you pay both the worker and the employer share:

  • 12.4% for Social Security, on taxable net earnings up to the yearly wage base
  • 2.9% for Medicare
  • 15.3% total, figured on 92.35% of your Schedule C net profit

You can deduct half of that self-employment tax when you figure your adjusted gross income. Mileage deductions shrink the profit the tax is based on.

How mileage deductions help

In 2026 the IRS standard mileage rate is 72.5¢ per mile from January through June and 76¢ per mile from July through December.

Here is one example, not a promise. You earn $10,000 and drive 9,000 business miles. At a blended rate near 74¢, the mileage deduction is about $6,680. Taxable profit falls to about $3,320 before other costs. The 15.3% tax is then charged on that smaller number.

Your miles and other expenses will not match this example. Use it to see the shape of the math, then run your own numbers.

Do the check before you accept

You should not do tax math in traffic. GigDecider estimates fuel, miles, and a rough take-home number on top of the offer.

Try the free tax calculator, the DoorDash calculator, or the Uber Eats calculator. These are estimates, not a tax return.