Driver Tax Estimator

Calculate self-employment taxes for rideshare and delivery work. Compare mileage deduction vs actual expenses and estimate quarterly payments.

Estimated tax liabilityMileage vs actual comparisonQuarterly payment amountsDeduction breakdown

How to Use This Calculator

1.Enter your annual gross earnings from gig work
2.Add your total business miles driven
3.Enter actual vehicle expenses (for comparison)
4.See which deduction method saves more

Income & Mileage

Annual Gig Income

Gig Miles Driven

Actual Expenses

Gas & Fuel

Maintenance & Repairs

Insurance (Gig Portion)

Other Expenses

Tax Estimate

Total Tax

$244.80

Quarterly Payment

$61.20

Best Deduction

$13,400.00

Effective Rate

1.6%

Standard Mileage

$13,400.00

20,000 mi × $0.67

Best Option

Actual Expenses

$5,200.00

Gas + maintenance + insurance + other

Tax Breakdown

Gross Income

$15,000.00

Deduction (mileage)

-$13,400.00

Net Profit

$1,600.00

Self-Employment Tax (15.3%)

Social Security + Medicare

$244.80

Est. Federal Income Tax

After standard deduction

$0.00

Total Estimated Tax

$244.80

Quarterly estimated taxes are due April 15, June 15, September 15, and January 15. Pay via IRS Direct Pay or EFTPS to avoid penalties.

Standard Mileage is Better

The standard mileage deduction ($13,400.00) saves you $8,200.00 more than actual expenses.

Common Driver Tax Deductions

• Mileage OR actual vehicle expenses
• Phone bill (business %)
• Phone mounts and chargers
• Insulated delivery bags

• Parking and tolls
• Car washes and cleaning supplies
• Water and snacks for passengers
• Tax software and accountant fees

Tax Tips for Gig Drivers

Track Every Mile: Use apps like Stride, Everlance, or Gridwise to automatically track mileage. The IRS requires a contemporaneous log - don't try to reconstruct mileage at tax time.

Separate Bank Account: Open a separate checking account for gig income. This makes tracking income and expenses much easier and looks more professional to the IRS.

Set Aside for Taxes: Put 25-30% of net earnings in a savings account for taxes. This prevents a painful surprise at tax time.

Calculate vehicle costs →Calculate true earnings →

Common Questions

What taxes do gig drivers pay?

Gig drivers pay self-employment tax (15.3% for Social Security and Medicare) plus federal and state income tax. The total tax burden is typically 25-35% of net profit, though the mileage deduction significantly reduces taxable income.

Should I use mileage or actual expenses?

Most gig drivers benefit from the standard mileage deduction ($0.67/mile for 2024). Actual expenses method may be better if you drive a very fuel-efficient car with low costs. You can only choose one method per year.

Do I need to pay quarterly estimated taxes?

If you expect to owe $1,000+ in taxes for the year, you should make quarterly estimated payments (April 15, June 15, Sept 15, Jan 15). Failure to do so may result in underpayment penalties.

What can I deduct as a gig driver?

Mileage (or actual vehicle expenses), phone data plan (business %), tolls and parking, car washes, insulated bags, phone mounts, and other supplies. Keep receipts and use a tracking app like Stride.

This is an estimate for planning purposes only. Tax laws change and individual situations vary. Consult a qualified tax professional for advice specific to your situation. IRS Publication 463 covers business travel expenses in detail.