Calculate taxes for gig workers (Uber, DoorDash, Instacart, etc). Includes mileage deduction, self-employment tax, and quarterly estimated payment amounts.
Auto-updated · Verified daily against IRS, Fed & Treasury sources
Enter your numbers below
A mid-level software engineer in Austin, TX is comparing a $130,000 W-2 offer against their current $115,000 role. The new offer includes a $10,000 signing bonus and 0.1% equity in a Series B company.
Takeaway: Texas has no state income tax, which inflates take-home vs. the same offer in California (~9.3% marginal) or New York (~6.85%). Run the comparison with your state's rate above.
Take-home calculators estimate withholding based on single/married status and claimed allowances. If you have side income, multiple jobs, or itemized deductions, your actual withholding will differ. The IRS Tax Withholding Estimator is the most accurate tool for W-4 calibration.
Nine states have no income tax (TX, FL, WA, NV, AK, SD, WY, TN, NH). California tops out at 13.3% marginal. State tax can shift your net paycheck by $200-$1,000/month on a $100K salary. Always select your state before reading take-home results.
Cost of Living Salary AdjustmentEmployer-paid health insurance, 401(k) match, HSA contributions, and paid leave have real dollar value — typically $8,000-$25,000/year for a mid-career employee. Comparing two offers on base salary alone ignores a major component of total compensation.
Benefits Value CalculatorW-2 employees pay 7.65% FICA (SS + Medicare); employers match it invisibly. 1099 contractors pay the full 15.3% self-employment tax. A $100K 1099 contract has roughly $7,650 more tax friction than a $100K W-2 salary before any other adjustments.
1099 vs W-2 Tax ComparisonBonuses are withheld at a flat 22% federal supplemental rate (or 37% over $1M) — not your effective rate. Your actual tax on the bonus is determined at year-end filing. If your marginal rate is below 22%, you'll get a refund; above, you may owe.
Bonus Tax CalculatorBased on your inputs
14.4% effective tax rate
| Gross Gig Income | $40,000 |
|---|---|
| Mileage Deduction | $13,400 |
| Other Expenses | $1,500 |
| Net Earnings | $25,100 |
| Self-Employment Tax | $3,547 |
| Federal Income Tax | $948 |
| State Tax | $1,255 |
| Total Tax | $5,749 |
| Quarterly Payment | $1,437 |
| Annual Take-Home | $19,351 |
Reality Score:save 3 numbers across housing, debt & cash to see how your full picture holds up (0–100). One calc alone can't tell you that.
Stays in your browser. Never sent to us.
Analyze 3+ calcs to unlock your Financial Picture dashboard (cross-analysis of all your numbers).
Gig workers are treated as self-employed contractors. You pay self-employment tax (15.3%) plus federal and state income tax on net earnings (income minus business expenses).
Yes! Rideshare and delivery drivers can deduct mileage at the IRS rate (67¢/mile in 2024). This is one of the largest deductions available to gig workers.
At 67¢/mile and 20,000 miles, that's $13,400 in deductions — saving roughly $4,000-$5,000 in taxes for most gig workers.
If you expect to owe $1,000+ in taxes for the year, you may want to make quarterly estimated payments to avoid penalties. Due dates: April 15, June 15, Sept 15, Jan 15.
Rideshare drivers can deduct mileage (67 cents/mile in 2024), phone and data plan (business percentage), car washes, phone mounts and chargers, snacks for passengers, and tolls and parking for business. Mileage is typically the largest deduction, often $8,000-$15,000 annually.
Yes. All gig delivery drivers pay 15.3% self-employment tax on net earnings plus federal and state income tax. Track all miles driven for deliveries including driving to pickup locations and between orders. These miles are fully deductible at the IRS standard rate.
Platforms must issue a 1099-K if you earn $600 or more. However, you owe taxes on all income regardless of whether you receive a 1099. Report all gig income on Schedule C even if below the reporting threshold to stay compliant with IRS rules.
Yes. Gig workers can open a Solo 401k (up to $69,000/year in 2024), SEP IRA (25% of net earnings), or traditional/Roth IRA ($7,000/year). Contributions reduce taxable income. A Solo 401k offers the highest limits and most flexibility for self-employed individuals.
Use apps like Stride, Everlance, or MileIQ to automatically track business miles via GPS. Record the date, destination, purpose, and miles for each trip. The IRS requires contemporaneous records. Start tracking from the moment you turn on the app until your last delivery or ride.
The IRS standard mileage rate is 67 cents per mile for 2024 business driving. This covers gas, insurance, maintenance, and depreciation. For a gig driver logging 15,000 business miles per year, this deduction equals $10,050, significantly reducing self-employment and income tax liability.
Mileage Deduction = Miles × $0.67 (2024 IRS rate)
SE Tax = Net Earnings × 92.35% × 15.3%
Taxable Income = Net Earnings − ½ SE Tax − Std Deduction
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
Found an error in a formula or source? Report it →
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.