Why gig drivers get crushed in April
Every rideshare and delivery payout arrives with zero tax withheld. Drivers who don't set aside through the year owe thousands at filing — and may also owe underpayment penalties for skipping quarterly estimates.
- • US: 15.3% self-employment tax (SS + Medicare, both halves) on net SE profit, plus federal + state income tax.
- • UK: Class 4 NIC at 6% on profits £12,570–£50,270, then 2%, plus income tax bands.
- • Canada: CPP self-employed contribution at 11.4% on net up to YMPE, plus federal + provincial.
- • Australia: no separate SE tax, but PAYG instalments apply and you must fund your own super.
Track mileage from app-on to app-off
Standard mileage is the most important deduction in the US ($0.70/mi for 2025) and similar in many other jurisdictions. Track every business mile — including dead miles between rides — from the moment you go online. Tools like Stride, Everlance, MileIQ, or Hurdlr auto-track. The deduction often turns a $50k gross year into a $30k taxable year.
Pay quarterly or get fined
US gig drivers must pay estimated taxes quarterly (Apr 15, Jun 15, Sep 15, Jan 15) if expected tax owed exceeds $1,000. Skipping payments triggers IRS underpayment penalties even if you settle in April. Move the calculator's weekly reserve to a separate high-yield account so the money is actually there when the form comes due.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
How much should I set aside from each Uber / DoorDash payout?
Most full-time US gig drivers should reserve 20–30% of gross after mileage deduction. Part-timers in higher tax brackets sometimes need 30–35%. Run this calculator with your actual miles and bracket — guesswork is what lands drivers with surprise tax bills.
Can I deduct car payments and gas?
In the US you pick one method: standard mileage ($0.70/mi for 2025) OR actual expenses (gas, depreciation, lease, insurance × business %). Standard mileage usually wins for gig drivers because the rate already includes depreciation.
Do gig platforms send a 1099?
US: Yes — 1099-NEC if you earned $600+ from a platform, or 1099-K from third-party payment processors above thresholds. Even if you don't get one, you still owe tax on the income.
What happens if I don't pay quarterly estimates?
The IRS charges an underpayment penalty (currently ~8% annualized) on what you should have paid each quarter. Set up automatic quarterly transfers to avoid it.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last reviewed
July 2026. We re-check every figure on the platform on a rolling quarterly cycle.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.