How Much Should Gig Workers Set Aside for Taxes?

Last updated: September 2026

When you drive for DoorDash, Uber, or Instacart, nobody withholds tax from your payouts. The full amount lands in your account, and the tax bill shows up later. Setting aside the right amount as you go is the difference between a calm April and a scramble.

The short answer: a common rule of thumb is to set aside roughly 20–30% of your net profit. The self-employment tax portion alone is about 14% of net profit, and income tax and your state come on top of that. Your own number depends on your income, deductions, and where you live.

You're paying two different taxes

1. Self-employment tax. At a regular job, your employer pays half of your Social Security and Medicare taxes. As a gig worker, you pay both halves. The rate is 15.3% (12.4% Social Security plus 2.9% Medicare), applied to 92.35% of your net earnings. The Social Security portion stops at $184,500 of earnings for 2026, and the Medicare portion continues above that. You generally owe it if your net self-employment earnings are $400 or more for the year.

2. Income tax. This is the regular federal tax on your profit, plus state income tax where you live. It depends on your total income for the year, including any other job. If your total income is low, the standard deduction may shrink or erase this part, but the self-employment tax still applies.

Tax is on your profit, not your payouts

You're taxed on net profit: what you earned minus your deductible expenses. For most drivers, mileage is the biggest deduction, so tracking it carefully lowers your bill. (Our 2026 mileage rate guide covers the rate and what counts.)

Example (illustrative only):
Earned from delivery apps ..... $10,000
Deductible mileage ............ −$3,000
Net profit .................... $7,000
Self-employment tax ........... ≈ $989
($7,000 × 92.35% × 15.3%; income tax is separate)

Estimated quarterly payments

Because nothing is withheld, the IRS generally expects you to pay during the year rather than all at once in April. You're generally expected to make estimated payments if you expect to owe $1,000 or more for the year. The 2026 due dates for a calendar-year taxpayer:

Income earned	Due date
Jan 1 – Mar 31, 2026	Apr 15, 2026
Apr 1 – May 31, 2026	Jun 15, 2026
Jun 1 – Aug 31, 2026	Sep 15, 2026
Sep 1 – Dec 31, 2026	Jan 15, 2027

When a date falls on a weekend or holiday, it usually moves to the next business day. The periods aren't equal quarters, so use the dates above rather than assuming every three months.

To avoid an underpayment penalty, you generally need to pay in at least 90% of this year's tax, or 100% of last year's tax (110% if last year's adjusted gross income was over $150,000). If you missed an earlier date this year, paying sooner still limits how much penalty builds up.

A simple system that works

Open a separate savings account just for taxes, so the money never blends into everyday spending.
Move a set percentage every time you cash out. Pick a number you're comfortable with (many people start around 25%) and transfer it right away.
Track your miles from day one. Every deductible mile lowers your net profit and your bill.
Check your number once a quarter. If you earned more or less than expected, adjust the percentage.

Where our calculator fits

The tax set-aside in our calculator is a flat percentage of what you enter, with a default of 15%. That's a simplified starting point and not a tax calculation. It's closest to covering self-employment tax alone, so if you also owe income tax, move the slider up. See how the percentage changes what you actually keep:

Try the Real Wage Calculator →