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Quick answer

If you're one of America's delivery drivers, you're self-employed for taxes: you owe the 15.3% federal self-employment tax on your net profit, plus federal and state income tax. The upside is a long list of deductions — track them and your bill drops fast. On $30,000 of net profit, self-employment tax alone is about $4,239 before those deductions.

Do delivery drivers pay self-employment tax?

Yes. If you earn money in this line of work without an employer withholding taxes for you, you're self-employed in the eyes of the IRS. That means the 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on your net profit, on top of federal and state income tax. It's the same rate in every state — see how self-employment tax works and your state's income-tax breakdown. Half of your SE tax is deductible, and most delivery drivers also qualify for the 20% Qualified Business Income deduction.

What tax forms do delivery drivers get?

DoorDash, Grubhub, Instacart and Uber Eats send a 1099-NEC or 1099-K once you pass the reporting threshold. All earnings are taxable even if you don't receive a form.

Tax deductions for delivery drivers

This is where the money is. Every legitimate business expense reduces both your income tax and your self-employment tax, so tracking them all year is the highest-return thing you can do. Common deductions for delivery drivers:

  • Mileage. Deduct every business mile at the standard rate (72.5¢/mile for January–June 2026, rising to 76¢/mile from July 1) — usually the biggest write-off for delivery work.
  • Insulated bags and equipment. Hot bags, drink carriers, and coolers bought for deliveries.
  • Phone and data plan. The business-use share of your phone bill.
  • Tolls and parking. Paid while making deliveries.
  • Bike or e-bike costs. If you deliver by bike: purchase, repairs, and accessories (bike couriers use actual costs, not the mileage rate).
  • Gear. Phone mount, charger, and safety equipment.
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How much should delivery drivers set aside for taxes?

A safe rule of thumb is 25–30% of your net profit, set aside as you go and paid to the IRS four times a year as estimated quarterly taxes. Skipping quarterly payments can mean an underpayment penalty. The exact percentage depends on your income, deductions, and state.

Want your real number? The 1099 Tax Calculator estimates your 2026 self-employment tax, income tax, QBI deduction, and quarterly payments in seconds.

Open the 1099 tax calculator ›

Frequently asked questions

Yes. Delivery drivers are self-employed, so you owe the 15.3% self-employment tax (Social Security and Medicare) on your net profit, on top of federal and state income tax. Half of the SE tax is deductible, and most freelancers also get the 20% QBI deduction.
A safe rule of thumb is 25–30% of your net profit, set aside as you earn and paid to the IRS quarterly. The exact share depends on your income, deductions, and state — run your numbers through the 1099 tax calculator.
Yes. The $600 figure is only the threshold for the platform to send you a 1099 — it is not a tax-free limit. All self-employment income is taxable and should be reported, regardless of whether you get a form.
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