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What you actually keep
Gross pay isn't your pay. Enter a shift — or a week — and see your real net after vehicle costs and self-employment tax.
The short answer
Your real hourly wage as a gig driver is your gross pay minus what driving actually cost you (fuel plus wear — commonly around 30–35 cents a mile) minus a self-employment tax set-aside of 15.3%. The IRS 2026 standard mileage rate (76 cents a mile as of July 1) is a separate number: it is what you may deduct, so it lowers the tax you set aside — it is not what the driving cost. Example: a $235 gross day over 8 hours is roughly $175 take-home, about $22 an hour, not $29. Estimates for planning, not tax advice.
What driving costs you (fuel + wear) is not the same as what you can deduct. Your cost is editable below; the deduction uses the IRS 2026 rate — 76¢/mi from July 1.
Tax set-aside is figured on your $114 mileage deduction, not on what driving cost you — two different numbers. State income tax not included; the app calculates your state.
GigMiles does this automatically every shift — free forever, no card.
Vehicle cost is what driving actually cost you — fuel plus wear — at an editable per-mile rate (car default $0.33/mile: fuel at $4.50/gal ÷ 25 MPG plus $0.15/mile wear, the same no-vehicle-data defaults the GigMiles app uses; your own car will differ). The IRS 2026 standard mileage rate of 76¢/mile (from July 1, 2026; 72.5¢ Jan–Jun) is the DEDUCTION, not the cost: self-employment tax = (gross − mileage deduction) × 92.35% × 15.3%, floored at $0. The IRS standard mileage rate does not apply to e-bikes, so a courier deducts actual expenses and the two figures coincide (default $0.057/mile, editable). Federal self-employment tax only — state income tax not included. Estimates for planning, not tax advice.
Common questions
What is the IRS standard mileage rate for 2026?+
The 2026 IRS business standard mileage rate is 76 cents per mile as of July 1, 2026 (it was 72.5 cents for the first half of the year), for cars, vans, pickups, and panel trucks. Because the IRS changed it mid-year, 2026 has two rates: multiply your July–December miles by 0.76 and your January–June miles by 0.725. Note what the rate is for: it is a DEDUCTION that lowers your taxable income, not a bill you paid. Most economical cars cost far less than 76 cents a mile to run, which is why the standard mileage method usually beats deducting actual expenses.
How is self-employment tax calculated for gig drivers?+
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) applied to 92.35% of your net earnings — gross income minus your business deductions. For a car the deduction is normally the standard mileage rate, so this calculator applies (gross − miles × 76¢) × 0.9235 × 15.3%, never less than $0. Your real cost of driving is a separate, usually smaller number, and it is what reduces your take-home pay.
Can I deduct miles on an e-bike?+
Not with the standard mileage rate — the IRS limits it to cars, vans, pickups, and panel trucks. E-bike couriers deduct actual expenses instead: electricity, battery wear, tires, and maintenance. This calculator estimates e-bike costs at about $0.057 per mile (roughly 6 cents) by default — electricity plus battery and mechanical wear — and you can edit that rate to match your real costs. For a full electricity-and-wear breakdown, use the e-bike cost calculator.
Does this calculator include state income tax?+
No. Version 1 covers self-employment tax only, which every gig driver owes regardless of income bracket. State income tax is not included — the GigMiles app calculates your state automatically.
Deliver on an e-bike? Use the e-bike cost calculator →gigmiles.app