Gig economy
Gig income calculator
The app shows gross. This shows what an hour is worth after mileage and taxes.
A rideshare or delivery app tells you what you earned, not what you made. Every mile costs gas and wear, and no one withholds your taxes. This works out your real net profit, what an hour and a mile pay once the mileage deduction comes out, and what is left after setting aside for tax.
Deducted at 72.5¢.
Deducted at 76¢.
Phone, hot bags, tolls.
Enter your earnings, hours and miles.
Worked example, $20,000 over 500 hours
A driver earns $20,000 across 500 hours, driving 8,000 business miles, with $500 of other costs:
| Measure | Amount |
|---|---|
| Gross per hour | $40/hr |
| Mileage deduction (a real cost) | − $5,940 |
| Net profit | $13,560 |
| Net per hour | $27/hr |
| Take-home per hour after a 30% tax set-aside | $19/hr |
The app's $40 an hour becomes $27 once mileage is counted, and about $19 once you set aside for taxes. That gap is why the headline rate is misleading, the miles are a cost even when the standard deduction, not cash, is how you claim them.
Questions
Why count the mileage deduction as a cost?
Because driving really does cost money, fuel, tires, maintenance, the car wearing out. The IRS standard mileage rate (72.5¢ then 76¢ in 2026) is a fair proxy for that per-mile cost, so subtracting it shows your true profit, and it is also exactly what you deduct on Schedule C.
How much should I set aside for taxes?
Around 25 to 35% of net profit for self-employment tax (15.3%) plus federal and state income tax. This calculator uses 30% as a middle estimate. For a precise figure by state, use the 1099 tax calculator.
Which miles count?
Miles driven for the work, between deliveries, waiting for the next ping while logged on, driving to a busy zone. Commuting from home to where you start is not deductible. Track them with an app; the deduction is too large to estimate.
Is a low net-per-hour normal?
For driving gigs, often yes, the mileage cost is high. If your net-per-hour is well below local wages, it can mean you are driving too far for each job, or a less efficient car is eating the margin. The vehicle cost calculator shows your real per-mile cost.
Related tools
- Mileage deduction calculator the 2026 split rate
- Vehicle cost calculator your real cost per mile
- Gig tax by category driver, seller, creator and more
Economics estimate for the 2026 tax year, before the exact tax on the profit. Not tax advice.