Taxes for rideshare and delivery drivers (US, 2026)
Driving for an app makes you self-employed for tax. Nobody takes tax out of what the app pays, so the amount to keep back is yours to work out — and it is bigger than most people expect, because of self-employment tax.
Two taxes, not one
Self-employment tax is Social Security and Medicare. An employee pays half and the employer pays the other half; a self-employed driver pays both. It is worked out on Schedule SE, separately from income tax, which is why a driver can owe it even in a year with no income tax at all.
Income tax applies to your total income, including driving profit. Half of the self-employment tax is deducted before income tax is worked out, and many drivers also get the qualified business income deduction. Both are included in the figures below, from the same verified 2026 rules the site’s salary calculator uses.
Profit, not earnings, is what is taxed
Tax is on what the driving earns after its costs. The biggest cost is the car, and there are two ways to deduct it:
- The standard mileage rate. For 2026 the IRS set it at 72.5 cents a business mile from January to June, and raised it to 76 cents from July 1 because fuel prices rose. It covers electric and hybrid cars as well as gasoline and diesel. Parking fees and tolls are deducted on top.
- Actual costs. Fuel, repairs, insurance, depreciation and the rest, multiplied by the share of the car’s use that is business.
The method is not always a free choice every year. To use the standard rate for a car you own, you generally have to choose it in the first year the car is used for business. IRS Publication 463 has the rules, including for leased cars and switching methods — and for which miles count as business miles. A mileage log is the evidence either way.
A worked example
A single driver with no other job earns $30,000 from the apps in 2026, drives 6,000 business miles in each half of the year, and pays $300 in parking and tolls.
| Earnings | $30,000.00 |
| Standard mileage: 6,000 × 72.5¢ + 6,000 × 76¢ | −$8,910.00 |
| Parking and tolls | −$300.00 |
| Driving profit | $20,790.00 |
| Self-employment tax | $2,937.54 |
| Income tax | $257.70 |
| Federal tax on the driving | $3,195.24 |
That is about 11 cents of every dollar the apps paid. Most of it is self-employment tax: the income tax is small because the standard deduction and the business income deduction absorb most of the profit.
The same driving on top of a $50,000 job adds $4,757.13 — about 16 cents a dollar — because the profit now lands in a higher bracket. The self-employment tax is the same; the income tax is not. That is why a flat rule of thumb serves some drivers badly.
Paying it during the year
Because nothing is withheld, many drivers make quarterly estimated payments instead of finding one large bill in April. IRS Form 1040-ES has the due dates and the safe-harbor rules that decide how much you need to have paid to avoid a penalty. Putting a fixed share of every payout into a separate account makes the quarterly payment a transfer rather than a surprise.
Sources
These support specific points above. None of them is a statement about your situation.
- Internal Revenue Service — IRS sets 2026 business standard mileage rate at 72.5 cents per mile
Supports: 72.5 cents per business mile from January 1 to June 30, 2026; that the rate applies to electric and hybrid as well as gasoline and diesel vehicles; and that actual costs may be used instead.
Scope: United States federal tax.
Checked: 13 September 2026 - Internal Revenue Service — Internal Revenue Bulletin 2026-29 (Announcement 2026-11)
Supports: 76 cents per business mile for costs on or after July 1, 2026, changed because of fuel price increases.
Scope: United States federal tax.
Checked: 13 September 2026 - Internal Revenue Service — Publication 463, Travel, Gift, and Car Expenses
Supports: Parking fees and tolls deducted in addition to the standard mileage rate, and choosing the standard rate in the first year a car is used for business.
Scope: United States federal tax.
Checked: 13 September 2026 - Internal Revenue Service — Gig economy tax center
Supports: That income from gig work must be reported on a tax return.
Scope: United States federal tax.
Checked: 13 September 2026