About 36% of U.S. workers participate in the gig economy. A solid chunk of them have never once calculated what they actually net per hour. The app shows $18 a delivery. That sounds reasonable. But that's before gas, before the 15.3% self-employment tax, before the wear on your car that the IRS values at $0.70 a mile. Do the real math, and the number looks pretty different.
This isn't a hit piece on gig work — for the right person in the right market, it can genuinely pay well. But the only way to know if your situation is one of those is to run your actual numbers, not the ones on a Reddit post from someone in a different city with a different car.
The Three Costs Everyone Underestimates
Ask a gig worker what they make, and they'll usually quote their gross earnings from the app — total payout before any deductions. That's a reasonable starting point, but it skips over three categories that eat into that number fast.
1. Vehicle Expenses
For delivery drivers and rideshare drivers, the car is your biggest cost center. The IRS standard mileage rate for 2026 is $0.70 per mile — and that figure exists because it costs, on average, 70 cents per mile to operate a vehicle when you account for gas, oil changes, tires, depreciation, and insurance. A 30-mile delivery shift isn't free. It has a $21 cost attached to it before you earn a single dollar.
The other option is tracking actual expenses — gas receipts, oil changes, insurance attributable to business use. Some drivers come out ahead with actual expenses if they have an older, cheaper car. Our calculators let you toggle between both methods so you can see which one wins for your situation.
2. Self-Employment Tax
W-2 employees pay 7.65% for Social Security and Medicare, and their employer quietly pays the other 7.65%. Gig workers pay both halves — the full 15.3% — because they are the employer. [Switches to serious face] This is the one that catches people off guard most.
The actual formula the IRS uses:
That $3,532 doesn't appear on any app payout screen. It shows up in April.
3. Deadhead Miles
Deadhead miles are the miles you drive without earning anything — driving to a restaurant to pick up an order, repositioning between zones, or driving home at the end of a shift. For delivery drivers, these can represent 20–40% of total miles driven. Every one of those miles costs you money.
A 2024 analysis of driver earnings data found the average rideshare driver drives 0.6 deadhead miles for every 1 paid mile. That means a driver logging 100 "working" miles is actually putting 160 miles on their vehicle. Factor that into your cost per mile and the math shifts noticeably.
Platform-by-Platform Breakdown
Not all gig platforms are built the same. Pay structure, expense profile, and tax treatment vary meaningfully depending on which one you're on. Here's how the four main delivery and rideshare platforms compare on the numbers that actually matter.
| Platform | Typical Gross/hr | Vehicle Cost | Tax Treatment | Est. Net/hr |
|---|---|---|---|---|
| DoorDash | $15–$25 | High (many short trips) | 1099 (SE tax) | $9–$15 |
| Uber / Lyft | $18–$28 | High (long deadhead) | 1099 (SE tax) | $10–$17 |
| Amazon Flex | $18–$25 per block | Medium (set routes) | 1099 (SE tax) | $12–$18 |
| Instacart Full-Service | $14–$22 | Medium (store + delivery) | 1099 (SE tax) | $9–$14 |
| Instacart In-Store | $13–$17 | Low (no delivery) | W-2 (employer pays half) | $11–$15 |
The Amazon Flex row is highlighted because it consistently comes out ahead on net hourly rate for drivers who can qualify and get consistent blocks. Predictable routes, less deadhead, and a fixed block rate beats variable-tip income for many drivers. That said, blocks can be hard to get in competitive markets — flexibility matters too.
How the Gig Economy Calculators Work
Each of our four gig calculators (DoorDash, Uber/Lyft, Instacart, Amazon Flex) walks through the same core logic:
- Enter your gross earnings inputs (deliveries per week, average per delivery, tips, etc.)
- Choose your expense method: Standard Mileage ($0.70/mi) or Actual Expenses
- The calculator subtracts expenses to get net income
- It applies SE tax (15.3% × 92.35% of net annual income)
- It estimates your quarterly tax payment so you know what to set aside
The output shows four numbers: Net Per Week, Effective Hourly Rate, Annual Net, and Quarterly Tax Due. That last one tends to get people's attention.
Strategies That Actually Move the Needle
Once you know your real hourly rate, you can start optimizing it. A few levers that consistently make a difference:
Chase peak windows, not just any hours
Earnings on DoorDash and Uber can vary by 30–50% depending on time of day and day of week. Lunch rush (11am–1pm), dinner rush (5pm–8pm), and weekend evenings consistently produce higher per-order earnings and lower wait times. Two focused hours during peak can beat four scattered hours off-peak.
Track every mile — including deadhead
At $0.70/mile, 15,000 business miles is a $10,500 deduction. Most casual drivers don't track deadhead miles, which means they're leaving hundreds or thousands in deductions unclaimed. Apps like Stride, MileIQ, or even a simple spreadsheet habit pay back many times over.
Multi-app to reduce dead time
Running DoorDash and Uber Eats simultaneously — accepting orders from whichever pings first — is a strategy many full-time drivers use to minimize wait time between orders. It requires careful management but effectively cuts deadhead miles and boosts hourly output.
Pay quarterly, not annually
The IRS charges underpayment penalties if you owe more than $1,000 at tax time without having made quarterly payments. Setting aside 25–30% of net earnings each month and paying on the quarterly deadlines (April 15, June 15, September 15, January 15) keeps you out of penalty territory and out of panic mode every spring.
Frequently Asked Questions
How much do DoorDash drivers actually make per hour?
After subtracting gas, vehicle wear, and self-employment taxes, most DoorDash drivers net between $8 and $15 per hour — not the $18–$25 gross figure the app shows. The exact number depends heavily on your market, vehicle type, and how aggressively you chase peak pay windows.
Do gig workers have to pay self-employment tax?
Yes. If you earn more than $400 net from gig work in a year, you owe self-employment (SE) tax of 15.3% on 92.35% of your net income. This covers Social Security and Medicare — the same taxes an employer would normally split with you. Budget for this quarterly or you'll face an ugly surprise in April.
What is the IRS mileage rate for gig workers in 2026?
The IRS standard mileage rate for 2026 is $0.70 per mile for business use. For delivery drivers, this covers all miles driven with orders — from the restaurant to the customer's door. Deadhead miles (driving to pick up an order) are also deductible, which many drivers overlook.
Is Amazon Flex or DoorDash better pay?
Amazon Flex typically pays a higher base rate ($18–$25 per block) with more predictable earnings, while DoorDash offers more scheduling flexibility but highly variable income. For drivers with reliable vehicles who prefer fixed-schedule work, Flex usually wins on net hourly rate. For maximum flexibility, DoorDash or Uber Eats tends to be the choice.
Should I track mileage for gig work?
Absolutely — and it's one of the highest-ROI habits a gig worker can build. At $0.70/mile, 10,000 business miles per year is a $7,000 deduction. Most gig workers who don't track mileage leave thousands of dollars in deductions on the table every year. Apps like MileIQ or Stride make it automatic.
How much should I set aside for taxes as a gig worker?
A safe rule of thumb is 25–30% of your net profit after deductions. This covers federal self-employment tax (15.3%), estimated federal income tax, and any state income tax. If you're in a higher income bracket, bump that to 35%. Pay quarterly (deadlines: April 15, June 15, September 15, January 15) to avoid IRS penalties.
Plug your actual numbers in — your market, your car, your hours, your tips. The app's estimate and your real net hourly rate are often different enough that it changes the decision entirely.