Plain-words guide

A regular job plus gig work: how the taxes fit together

Your job takes tax out of each paycheck. Your gig pay has none taken out, and it’s added on top of your wages.

Updated October 10, 2026 · Sources

Why the gig pay can cost more

Income tax is worked out on your total for the year. Gig pay sits on top of your wages, so it’s taxed at the rate for your highest dollars.

Self-employment tax is on top of that: 15.3% of your net earnings from gig work.

Two ways to cover it

Quarterly payments: send the extra to the IRS on the four due dates.

More withholding at your job: give your employer a new Form W-4 and ask for an extra amount out of each paycheck. Tax taken out of pay counts as paid evenly through the year, even if you change it late.

When there’s no penalty

There’s no penalty if you owe less than $1,000 when you file, after what your job took out.

There’s also none if what was paid covers 90% of this year’s tax, or 100% of last year’s, whichever is less. Last year’s share is 110% if your income was over $150,000. Your job’s withholding counts toward both.

What drivers commonly do

Many drivers with a job raise their withholding a little, so there’s nothing to send in each quarter.

Tax Pit Stop counts your job’s pay and withholding when it works out what to set aside.

The figures here are for the 2026 tax year, from IRS documents. Tax rules change from year to year.

Work out your own number

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