GigListoThe two taxes you pay on gig profit
- Self-employment tax: 12.4% for Social Security plus 2.9% for Medicare, which is 15.3%. It is generally charged on 92.35% of your net earnings from self-employment (IRS Topic 554).
- Income tax: federal tax, and state tax if your state has one, on your taxable income. The amount depends on your total income, your filing status and your deductions.
Because income tax is different for each person, there is no single percentage. Many self-employed people set aside around 20% to 30% of their profit as a starting point. Your own number can be lower or higher.
Profit, not payouts
You are taxed on your profit, which is what you earned minus your business costs, such as your vehicle costs. If you earned $1,000 and your costs were $400, the taxes are based on $600, not $1,000. This is why it is worth keeping a mileage log: every mile you record properly can lower your taxable profit.
2026 quarterly payment dates
The 2026 Form 1040-ES lists four estimated payment dates for calendar-year taxpayers: April 15, June 15, September 15 and January 15, 2027. If a date falls on a weekend or legal holiday, it moves to the next business day (Form 1040-ES). Whether you must make estimated payments depends on your situation, so check the form or ask a tax professional.
A simple habit
- After each payout, move a fixed percentage into a separate savings account.
- Use the gig worker tax calculator to see a number that fits your year.
- Adjust the percentage after you see the result.
Frequently asked questions
Is 25% enough?
It can be, but it depends on your income, your deductions and your state. Use the calculator with your own numbers.
Is this tax advice?
No. It is general information. Talk to a tax professional about your case.