This gig driver pay calculator shows what rideshare and delivery drivers (such as Uber, Lyft, DoorDash and Instacart drivers) really earn per hour after fuel, wear and tear and self-employment tax. It also works out your IRS mileage deduction using the 2026 rates.
2026 IRS standard mileage rates
| Miles driven | Business rate |
|---|---|
| 1 January – 30 June 2026 | 72.5 cents per mile |
| From 1 July 2026 | 76 cents per mile |
The IRS raised the rate in the middle of 2026, so use the rate that matches when you drove the miles. The deduction covers fuel, maintenance, insurance and depreciation, so if you use it you cannot also deduct those costs separately.
How real pay is calculated
- Car costs = fuel (miles ÷ MPG × fuel price) + maintenance and wear per mile.
- Real hourly pay = (earnings − car costs) ÷ hours online, including waiting time.
- Self-employment tax ≈ 15.3% × 92.35% × (earnings − mileage deduction).
Worked example
A driver earns $1,000 in a week, including tips, over 40 hours online and 800 miles. Fuel at $3.50 a gallon and 30 MPG costs $93.33, and wear at $0.10 a mile adds $80, so real pay is $20.67 an hour. The 76-cent mileage deduction is $608, leaving $392 of taxable profit and about $55 of self-employment tax, or about $19.28 an hour after that tax.
Frequently asked questions
Should I count waiting time in my hours?
Yes. Time spent waiting for orders is time you cannot use for other work, so including it gives your true hourly pay.
Can I deduct miles driven to my first pickup?
Miles driven while working, including to pickups and between trips, generally count as business miles. Commuting from home before you log on usually does not. Keep a mileage log.
Do gig drivers pay taxes?
Yes. Drivers are usually independent contractors, so they pay income tax and self-employment tax, often through quarterly estimated payments.
Is the mileage deduction better than actual expenses?
For most drivers with economical cars it is larger and simpler. Drivers with expensive cars or high costs can compare both methods.
Related calculators
- Self-Employment Tax Calculator
- Gas Mileage Calculator
- Fuel Cost Calculator
- Freelance Rate Calculator
Sources
- IRS: 2026 business standard mileage rate (72.5 cents)
- Thomson Reuters: IRS midyear increase to 76 cents (Announcement 2026-11)
Last reviewed: October 2026. For information only; not financial, tax or legal advice.