Handbook / Side business

Delivery driver taxes for 2026: income, mileage, SE tax and payments

Tax-year note: Tax information on this page applies to the 2026 tax year (returns filed in 2027), from IRS pages checked in November 2026. Figures and dates are labelled with their tax year where they appear. Check current IRS pages before you rely on them.

If you deliver food, groceries or packages through an app, you are usually an independent contractor, not an employee. No tax is withheld from your payouts, so you handle income tax and self-employment tax yourself. This guide covers the 2026 tax year, for returns filed in 2027. Check the IRS pages linked here before filing, as figures can change.

Report all your income

The IRS states that gig economy income must be reported on your tax return even if it is from part-time or side work, not reported on a form such as a Form 1099-K or 1099-NEC, or paid in cash or another form. For delivery drivers, that includes:

• delivery pay from each app
• tips through the app
• cash tips
• bonuses and incentives

Download annual earnings summaries from each platform and compare them with your own records.

The forms you might receive

• Form 1099-NEC: some platforms use this to report payments for your services.
• Form 1099-K: payment platforms must generally issue it when payments total more than $20,000 in more than 200 transactions, though they may send one with lower amounts, according to the IRS.

Receiving no form doesn't change what you must report. See the guides to Form 1099-NEC and Form 1099-K.

Where it goes on your return

Self-employed drivers generally report income and expenses on Schedule C, figure self-employment tax on Schedule SE, and carry both to Form 1040. The guide to Schedule C explains the form.

Car expenses

Your car is usually your largest deduction. You can generally choose:

• Standard mileage rate: for 2026, the IRS business rate is 72.5 cents per mile. Business parking fees and tolls can be deducted in addition.
• Actual expenses: the business share of fuel, repairs, insurance, depreciation and other costs.

IRS Publication 463 (2025 edition) explains that if you want to use the standard mileage rate for a car you own, you must choose it in the first year the car is available for use in your business. For a leased car, you must use it for the entire lease period. Check for a 2026 edition before filing.

Personal commuting is not deductible. How the rules apply to delivery driving depends on your facts, so keep a log of every trip and ask a professional if unsure. The guide to the standard mileage rate has more.

Mileage log

Record for each trip or shift:

• date
• start and end odometer readings, or miles from a tracking app
• business purpose, such as deliveries for a named app

App reports of "active miles" may not match your own records, so a separate log is useful.

Other common expenses

• business share of your phone and data plan
• insulated bags and delivery gear
• parking and tolls for business trips
• platform fees charged to you

Keep receipts and records.

Self-employment tax

The IRS self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of net earnings, and you generally owe it when net earnings are $400 or more. For 2026, the Social Security part applies up to a wage base of $184,500, combined with any wages. You can deduct half of SE tax when figuring adjusted gross income. See Schedule SE.

Estimated tax payments

You generally need quarterly estimated payments if you expect to owe $1,000 or more when you file. Due dates for 2026 income are April 15, June 15 and September 15, 2026, and January 15, 2027. If you also have a job, you can increase W-4 withholding instead. See Form 1040-ES and how much to set aside.

State and local taxes

States may tax your earnings too, and some localities have income taxes. Check your state tax agency.

Year-end checklist

• total earnings and tips from every app
• total business miles from your log
• receipts for phone, gear, parking and tolls
• estimated payments made for the year
• any Forms 1099 received

Having these ready makes Schedule C much quicker.

If you also have a job

You can raise withholding on your W-4 to cover delivery income instead of, or as well as, estimated payments.

Report every delivery payout and tip, track business miles from day one, choose your car method carefully, budget for 15.3% self-employment tax, and make 2026 estimated payments on time.