Does this work for Uber and Lyft? Yes. Whether you drive for Uber, Lyft, Instacart, or GrubHub, the tax rules are the same. You are an independent contractor (1099), which means you pay the same 15.3% self-employment tax rate. Simply enter your total 1099 income from all apps into the "Total Earnings" box above.

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If you drive for DoorDash, Uber, Lyft, or Instacart, you are an Independent Contractor. This means taxes are not taken out of your paycheck automatically.

You are responsible for paying the 15.3% Self-Employment Tax. However, you can significantly lower this bill by deducting your mileage.

This free calculator helps you estimate:

1. Your Mileage Deduction using the new 2025 IRS Rate (70 cents/mile).
2. Your Taxable Income after expenses.
3. Your Real Net Profit (What you actually keep).

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What is the IRS Mileage Rate for 2025?

For 2025, the IRS has increased the Standard Mileage Rate to 70 cents per mile for business use. This is a massive tax break for drivers.

• Example: If you drove 1,000 miles, you get a $700 tax deduction. This reduces your taxable income directly.

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What Can Gig Workers Deduct?

Besides mileage, do not forget to deduct these common business expenses in the "Other Expenses" box:

• Phone Bill: (Percentage used for work).
• Hot Bags & Blankets: Equipment bought for delivery.
• Car Washes & Cleaning: (If required for passengers).
• Parking & Tolls: (While working).

(Disclaimer: This tool provides an estimate for educational purposes. Always consult a CPA for official tax filing.)

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FAQ

Q: What is the IRS Mileage Rate for 2025?

For 2025, the IRS has increased the Standard Mileage Rate to 70 cents per mile for business use. You can verify this on the official [IRS Standard Mileage Rates] page.

Q: What Can Gig Workers Deduct?

In addition to the standard mileage rate, you can typically deduct "non-vehicle" business expenses such as the business portion of your phone bill, hot bags, blankets, and roadside assistance plans. For a full list of write-offs, check this guide on Common Self-Employed Expenses.