Why nothing is taken out
A regular job takes tax out of each paycheck. Gig apps don’t, because you aren’t their employee. You are in business for yourself.
That means you send the tax to the IRS on your own. Most drivers do it a few times a year, and settle up when they file.
The two federal taxes on gig pay
Self-employment tax pays for Social Security and Medicare. A job splits it with you. On your own, you pay both halves: 15.3% of your net earnings for 2026 (12.4% for Social Security and 2.9% for Medicare).
Net earnings are 92.35% of your profit. Profit means your pay and tips, minus business costs like your miles.
Income tax is the same tax everyone pays. It’s worked out on your total income for the year, after deductions.
Most states add their own income tax too.
What if I only made a little?
Self-employment tax starts once your net earnings reach $400 for the year. That’s true whether or not an app sends you a tax form.
Income tax depends on everything you earned, from every job and app. So even a small side gig adds to it.
What drivers commonly do
Many drivers move part of each payout to savings right away, so the money is there when the tax is due.
Then they pay the IRS during the year, on four due dates, instead of all at once in April.
Figures for 2026, from IRS documents. Tax rules change, so check the year at the top.
Work out your own number
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