Gig Tax Guide

Gig Worker Taxes: The Complete Guide

Driving for DoorDash, Uber, or Instacart makes you an independent contractor — nobody withholds taxes for you. That means you owe income tax plus self-employment tax, and you pay it yourself, as you go. Here's how gig taxes actually work, what you can deduct, and where to go deeper for your platform.

The three things every gig worker owes

1

Self-employment tax (15.3%)

On top of income tax, you owe 12.4% Social Security + 2.9% Medicare on your net earnings. Employees split this with an employer — you cover both halves, though half is deductible.

2

Income tax on net profit

You're taxed on profit, not gross payouts. Deductions like mileage lower the income you're taxed on, which is why tracking them matters so much.

3

Quarterly estimated payments

There's no withholding, so the IRS expects you to pay as you earn — four times a year. Skipping quarterly payments can mean an underpayment penalty.

Taxes by platform

Each platform issues different forms and reports your earnings differently. Pick yours for a step-by-step breakdown.

Taxes by state

State income tax varies — some states have none. See how your state treats gig income on top of federal self-employment tax.

Taxes by city

A few cities add a local income or earnings tax on top of federal and state — and some hit self-employed gig workers directly.

Compare platforms

Deciding where to drive? Compare how pay, fees, and tax forms stack up — then compute your own net pay.

More tax guides

New to gig work? Start here

Beginner guides to getting started and earning on each platform.

Free tax calculators

Frequently asked questions

Do gig workers have to pay taxes?

Yes. Gig platforms pay you as an independent contractor and withhold nothing, so you're responsible for federal and state income tax plus the 15.3% self-employment tax on your net earnings. You must report all income even if you don't receive a 1099.

How much should gig workers set aside for taxes?

A common rule of thumb is 25–30% of your net earnings (after deductions like mileage), covering self-employment tax plus federal and state income tax. Your exact rate depends on total household income and your state. The Tax Set-Aside calculator gives a personalized number.

What's the difference between a 1099-NEC and a 1099-K?

A 1099-NEC reports nonemployee compensation — direct pay for your services, like DoorDash and Instacart earnings or Uber incentives. A 1099-K reports payments processed through a third-party platform, such as Uber's gross rider fares. You owe tax on your net income regardless of which form (or no form) you receive.

Do gig workers have to pay quarterly taxes?

If you expect to owe $1,000 or more for the year, the IRS generally expects estimated payments four times a year — around April 15, June 15, September 15, and January 15. Paying quarterly avoids an underpayment penalty at filing time.

What can gig workers deduct?

The largest deduction for most drivers is business mileage at the IRS standard mileage rate. You can also deduct the business-use share of your phone, hot bags and equipment, tolls, parking, and platform service fees. Track expenses all year — you can't reconstruct them in April.

What tax forms do gig workers file?

Most gig workers report income and expenses on Schedule C and calculate self-employment tax on Schedule SE, filed with their Form 1040. Quarterly estimated payments use Form 1040-ES.

Authoritative IRS resources

Stop guessing what you owe

UnifyOne tracks your earnings, mileage, and tax set-aside across every platform automatically — so quarterly taxes are never a surprise.

This guide is educational information, not tax advice. Tax rules, thresholds, and the IRS standard mileage rate change yearly — confirm current figures with the IRS or a qualified tax professional for your situation.

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