How much should a delivery driver set aside for taxes?

Most delivery drivers set aside 20–25% of profit after mileage. The calculator shows your exact figure for your state and filing status.

Do I pay tax if I made under $600?

Yes. All self-employment income is taxable. Once net earnings reach $400 in a year you must file and pay self-employment tax, even without a 1099.

Can I deduct gas and mileage?

Pick one per car: the standard rate (72.5¢ a mile in 2026) or actual costs like gas, repairs and insurance. The standard rate is simpler and usually larger for delivery driving.

Yes. Mileage, income tracking and your tax set-aside are on the free forever tier, no card required.

Delivery driver taxes

Delivery driver taxes, handled while you drive

Whether you deliver for DoorDash, Uber Eats, Grubhub, Instacart, Amazon Flex or Spark, you are self-employed. No tax is withheld, so part of every payout still belongs to the IRS.

Hate Ledger tracks every app in one place, logs miles at the 2026 IRS rate of 72.5¢, and holds back your tax from each deposit so April is already paid for.

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What delivery drivers owe

Tax is charged on profit, not gross pay. After miles and costs, you pay 15.3% self-employment tax on 92.35% of profit, plus federal and state income tax.

Self-employment tax on net profit
Federal income tax by your real bracket
State income tax where you live
Quarterly estimates: Apr 15, Jun 15, Sep 15, Jan 15

Deductions delivery drivers miss

Miles are the big one, but the small costs add up across a year of shifts.

Miles to pickups, customers and between orders
Phone and data share used for work
Insulated bags, car mounts and chargers
Parking and tolls while on a delivery

Every app in one set of books

Most drivers run two or three apps. One ledger shows your true hourly and per-mile pay across all of them.

DoorDash, Uber Eats, Grubhub, Instacart, Flex and Spark
Tips separated from base pay
Real net per mile after fuel
Schedule C totals ready at year-end

Common questions about delivery driver taxes

How much should a delivery driver set aside for taxes?: Most delivery drivers set aside 20–25% of profit after mileage. The calculator shows your exact figure for your state and filing status.
Do I pay tax if I made under $600?: Yes. All self-employment income is taxable. Once net earnings reach $400 in a year you must file and pay self-employment tax, even without a 1099.
Can I deduct gas and mileage?: Pick one per car: the standard rate (72.5¢ a mile in 2026) or actual costs like gas, repairs and insurance. The standard rate is simpler and usually larger for delivery driving.
Is Hate Ledger free?: Yes. Mileage, income tracking and your tax set-aside are on the free forever tier, no card required.

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