Rideshare · Taxes · 9 min read
Quarterly estimated taxes for rideshare drivers.
If you owe more than $1,000 at tax time, the IRS expects you to have paid throughout the year — not in one April lump. Here's how much to set aside, when it's due, and how to avoid the underpayment penalty.
Updated July 17, 2026
01
Who has to pay quarterly
Anyone who expects to owe at least $1,000 in federal tax after withholding. For a full-time gig driver, that's almost everyone. If you have a W-2 day job with enough withholding to cover both incomes, you can skip quarterlies — otherwise, welcome to the club.
02
The 2026 due dates
- Q1 (Jan–Mar earnings) — due April 15, 2026
- Q2 (Apr–May earnings) — due June 16, 2026
- Q3 (Jun–Aug earnings) — due September 15, 2026
- Q4 (Sep–Dec earnings) — due January 15, 2027
03
How much to set aside per dollar earned
Rough rule for a solo driver with no other income:
- Self-employment tax: 15.3% of 92.35% of net profit ≈ 14.1% of net
- Federal income tax: 10–22% of net after the SE deduction (depends on bracket)
- State income tax: 0–10% (varies wildly — CA/NY high, TX/FL zero)
Practical shortcut: set aside 25–30% of NET earnings(revenue minus mileage deduction and other expenses) into a separate account the day it hits. High-tax states, push toward 35%.
04
Safe harbor — pay this much and you can't be penalized
Even if you end up owing more in April, you avoid the underpayment penalty if you pre-paid at least one of these during the year (in roughly-equal quarterly amounts):
- 90% of your current-year tax liability, OR
- 100% of last year's total tax (110% if last year's AGI > $150,000)
The second one is the easy button: divide last year's total tax by 4 and send that amount each quarter. Even if this year explodes, you're penalty-safe.
05
How to actually pay
Use IRS Direct Pay (free, from your bank) or EFTPS. Choose "Estimated Tax" and the correct tax year. Save the confirmation number. State: check your state DOR site for the equivalent.
06
What happens if you skip a quarter
The IRS charges an underpayment penalty — essentially interest — on the shortfall for each day it was late. For 2026, the rate is ~8% annualized. Not catastrophic, but real. Catching up in Q4 doesn't erase Q1–Q3 penalties.
07
FAQ
Can I just pay it all in Q4?
You can, but you'll owe an underpayment penalty for Q1–Q3 unless you use the annualized-income method (Form 2210 Schedule AI) to prove your income wasn't earned until later in the year.
Do I file a return each quarter?
No — quarterly payments are just payments, not returns. You reconcile everything on your annual Form 1040 with Schedule C and Schedule SE.
What if I overpay?
You get a refund, or you can apply the overpayment to next year's Q1 estimate. Either is fine.
Stop guessing. Just get the number.
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