Gig Tax Guide
Grubhub Taxes: What Every Driver Needs to Know
Grubhub pays you as an independent contractor, so nothing is withheld from your delivery pay. You owe your own federal, state, and self-employment taxes — and tracking your mileage is the single biggest way to lower what you owe. Here's how Grubhub taxes work.
How Grubhub taxes work
You're an independent contractor
No taxes are withheld from your pay. You owe federal and state income tax plus self-employment tax on your net earnings.
Self-employment tax is 15.3%
That's 12.4% Social Security + 2.9% Medicare on your net earnings — on top of regular income tax. It funds the benefits an employer would normally split with you.
Deductions lower your taxable income
Business expenses — equipment, software, supplies, phone, and mileage — reduce the net earnings you're taxed on. Tracked properly, they often save more than any other single move.
You pay as you go, quarterly
Instead of one April bill, the IRS expects estimated payments four times a year. Paying quarterly avoids an underpayment penalty.
Do you get a 1099 from Grubhub?
If you earned $600 or more on Grubhub in a year, you'll receive a 1099-NEC (issued through Grubhub's payment processor) reporting your nonemployee compensation.
If you earned less you may not get a form, but you still have to report the income. The IRS expects you to report all earnings whether or not a 1099 was issued.
What Grubhub drivers can deduct
Business mileage
Every mile driven while online or on a delivery, at the IRS standard mileage rate. Usually the single largest deduction.
Phone & data
The business-use percentage of your phone bill — you cannot work without it.
Tolls & parking
Tolls and parking paid while working are fully deductible (commuting tolls are not).
Hot bags & equipment
Insulated bags, phone mounts, chargers, and other gear bought for the work.
Insulated bags & supplies
Insulated delivery bags, phone mounts, and supplies bought to complete deliveries.
You can deduct the IRS standard mileage rate or your actual vehicle expenses — not both. For most drivers the standard mileage rate is simpler and larger. Keep a contemporaneous mileage log either way.
Frequently asked questions
Does Grubhub take out taxes for me?
No. Grubhub pays drivers as independent contractors and withholds nothing. You're responsible for setting aside and paying your own income tax and the 15.3% self-employment tax.
How much should I set aside for Grubhub taxes?
A common rule of thumb is to set aside 25–30% of your net earnings (what's left after mileage and other deductions) to cover self-employment tax (15.3%) plus federal and state income tax. Your exact rate depends on your total household income and state. Use the Tax Set-Aside calculator to get a number for your situation.
Do I get a 1099 from Grubhub?
If you earned $600 or more, Grubhub issues a 1099-NEC through its payment processor. Below that you may not receive a form, but you must still report the income.
What can Grubhub drivers deduct?
The biggest deduction is business mileage at the IRS standard mileage rate for every mile driven while delivering. You can also deduct the business-use share of your phone, insulated bags, tolls, and parking.
When are Grubhub taxes due?
Self-employed earners generally pay estimated taxes four times a year — around April 15, June 15, September 15, and January 15 — and file an annual return by April 15. Paying quarterly avoids an IRS underpayment penalty.
Authoritative IRS resources
Free calculators for Grubhub drivers
Stop guessing what you owe
UnifyOne tracks your food delivery earnings, mileage, and tax set-aside 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.