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How Much Should a DoorDash Driver Set Aside for Taxes? (With a Worked Example)

Educational only, not tax advice. GigMoney Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. The examples below are hypothetical, and your numbers will be different. Read our full disclaimer.

Last updated: October 23, 2026. All figures checked against IRS.gov on that date.

DoorDash doesn’t take taxes out of your payouts, so when you file, the whole bill lands on you. The fix is to set money aside as you earn it. How much should that be? It depends on your profit, not your gross pay, and your miles make a huge difference. Below, we walk through a fully worked 2026 example step by step using IRS numbers, then turn it into a simple percentage you can use.

Quick answer: In the two hypothetical examples below, total federal tax (income tax plus self-employment tax) came to about 16%–19% of net profit, or about 10%–13% of gross earnings. A reasonable starting rule for drivers at these income levels: set aside 15%–20% of net profit for federal taxes, plus whatever your state and local taxes require. Adjust it to your own situation, as explained below.

Why DoorDash drivers owe more than they expect

Dashers are paid as independent contractors, and the IRS lists driving for deliveries as a classic kind of gig work (IRS Gig economy tax center). With no employer withholding, you owe two federal taxes on your profit:

Self-employment (SE) tax: 15.3%, made up of 12.4% Social Security and 2.9% Medicare (IRS: Self-employment tax). An employer would normally pay half of this. When you’re self-employed, you pay all of it.
Regular federal income tax, figured with the brackets and the standard deduction.

You also generally have to make quarterly estimated tax payments if you expect to owe $1,000 or more (Form 1040-ES (2026)).

The 2026 numbers you need

Item	2026 figure	Source
Standard mileage rate, Jan. 1 – June 30	72.5¢ per business mile	IR-2025-128
Standard mileage rate, July 1 – Dec. 31	76¢ per business mile (raised midyear)	IRS Standard mileage rates; Announcement 2026-11
Share of net profit subject to SE tax	92.35%	Form 1040-ES (2026)
SE tax rate	15.3% (12.4% + 2.9%)	IRS SE tax page
Social Security wage base	$184,500	Form 1040-ES (2026)
Standard deduction (single)	$16,100	IR-2025-103
Single brackets (lower end)	10% up to $12,400; 12% over $12,400 up to $50,400; 22% over $50,400 up to $105,700	2026 Tax Rate Schedule X
QBI deduction	Up to 20% of qualified business income, with limits; new $400 minimum deduction starting in 2026	IRS QBI page; Form 1040-ES (2026)

Heads up on mileage: 2026 has two rates. Business miles driven before July 1, 2026 use 72.5¢, and miles driven on or after July 1 use 76¢ (IRS Announcement 2026-11). If you track miles by date, you can apply the correct rate to each half of the year.

Worked example: a hypothetical full-time Dasher

This example is hypothetical. “Driver A” isn’t a real person. The numbers are made up to show how the math works.

The assumptions

Files as single, takes the standard deduction, and has no dependents.
2026 DoorDash earnings, tips included: $40,000 gross.
20,000 business miles, logged evenly: 10,000 from January through June and 10,000 from July through December.
Uses the standard mileage rate and claims no other business expenses, to keep the example simple.
No W-2 job, no other income, and no tax credits. Driver A doesn’t claim the tips deduction (more on that below).

Step 1: Mileage deduction

10,000 miles × $0.725 = $7,250
10,000 miles × $0.76 = $7,600
Total mileage deduction = $14,850

Rates: IRS Standard mileage rates.

Step 2: Net profit

$40,000 − $14,850 = $25,150 net profit. This is what would show on Schedule C, line 31, which is the number SE tax starts from (Form 1040-ES (2026), SE worksheet note).

Step 3: Self-employment tax

$25,150 × 92.35% = $23,226.03 in net earnings from self-employment
Social Security: $23,226.03 × 12.4% = $2,880.03
Medicare: $23,226.03 × 2.9% = $673.55
SE tax = $3,553.58

This follows the 2026 Self-Employment Tax and Deduction Worksheet in Form 1040-ES.

Step 4: Adjusted gross income (AGI)

Half of SE tax can be deducted: $3,553.58 × 50% = $1,776.79 (Form 1040-ES (2026)).
AGI = $25,150 − $1,776.79 = $23,373.21

Step 5: Standard deduction

$23,373.21 − $16,100 = $7,273.21 taxable income before the QBI deduction (IR-2025-103).

Step 6: QBI deduction

The QBI deduction can be up to 20% of qualified business income. Generally, QBI is your business profit after deductions such as the deductible part of SE tax. The deduction is also capped at 20% of taxable income (IRS QBI page).

20% of QBI: 20% × $23,373.21 = $4,674.64
Cap: 20% × $7,273.21 = $1,454.64, which is the smaller amount
The new 2026 minimum deduction of $400 (for at least $1,000 of QBI from an active business you materially participate in) doesn’t come into play here because $1,454.64 is already higher (Form 1040-ES (2026); IRS QBI page).

Taxable income = $7,273.21 − $1,454.64 = $5,818.57

Step 7: Federal income tax

All of it falls in the 10% bracket (up to $12,400 for single filers): $5,818.57 × 10% = $581.86 (2026 Tax Rate Schedule X).

Step 8: Total and set-aside rate

Line	Hypothetical Driver A
Gross earnings	$40,000.00
Mileage deduction	−$14,850.00
Net profit	$25,150.00
SE tax	$3,553.58
Federal income tax	$581.86
Total federal tax	$4,135.44
As % of net profit	16.4%
As % of gross	10.3%
About per week (÷ 52)	$79.53

Notice that SE tax makes up most of Driver A’s bill. That’s common at lower profit levels, because the standard deduction and QBI shrink the income tax while SE tax applies from the first dollar of net earnings.

A second hypothetical: higher earnings

Also hypothetical. “Driver B” has the same setup, but with $70,000 gross and 30,000 miles, split 15,000 before July 1 and 15,000 after.

Line	Hypothetical Driver B
Mileage deduction (15,000 × $0.725 + 15,000 × $0.76)	$22,275.00
Net profit	$47,725.00
SE tax ($47,725 × 92.35% × 15.3%)	$6,743.33
AGI (net profit − $3,371.66 half-SE deduction)	$44,353.34
Taxable income before QBI (− $16,100)	$28,253.34
QBI deduction (capped at 20% of $28,253.34)	$5,650.67
Taxable income	$22,602.67
Income tax ($1,240 + 12% of amount over $12,400)	$2,464.32
Total federal tax	$9,207.65
As % of net profit / gross	19.3% / 13.2%

Rates and brackets come from the same IRS sources cited above. As profit rises, more of it lands in the 12% bracket (and eventually 22%), so the percentage creeps up.

Turning the examples into a simple rule

Federal, as a share of net profit: about 15%–20% for single drivers in roughly the $25,000–$50,000 net-profit range, based on the examples above.
Add state and local tax on top, using your state’s rules.
Lean higher (20%–25%+) if you have a W-2 job or other income, a working spouse, net profit high enough to reach the 22% bracket, or you’d simply like a cushion. Other income can push your gig profit into higher brackets.
Prefer a percentage of gross? It only works if your miles-to-earnings ratio stays about the same. Drivers with fewer miles per dollar have more profit, so a percentage of gross understates what they owe.

Then pay it in. For Driver A, paying the full projected tax in four equal installments works out to about $1,034 each. Alternatively, Driver A could aim for the safe harbor based on last year’s tax, which is explained in our quarterly estimated taxes guide (Form 1040-ES (2026)).

What can change your number

“No tax on tips”

The IRS lists “app/platform-based delivery person” under Treasury Tipped Occupation Code 804, goods delivery people (IRS list of tipped occupations). Qualified tips may be deductible up to $25,000. For self-employed people, the deduction can’t exceed net income from the business where the tips were earned, and it phases out above $150,000 of modified AGI ($300,000 joint) (IRS: No tax on tips). Some limits to know:

The tips deduction is claimed on Schedule 1-A (Form 1040-ES (2026)). SE tax is still figured on your full Schedule C net profit, tips included, so this deduction lowers income tax but not SE tax (see also Congressional Research Service).
Tip income excluded under this deduction doesn’t count as QBI (IRS QBI page), which partly offsets the benefit.

Because Driver A’s income tax was only $581.86, the most this deduction could save Driver A is that amount. The SE tax portion stays the same. Leaving it out, as the example does, gives a more conservative set-aside.

Tracking miles and other expenses

Keep a mileage log, diary, or other written record (IRS Pub. 463).
If you use the standard mileage rate, you can also deduct business parking fees and tolls (Pub. 463).
To use the standard mileage rate on a car you own, you must choose it in the first year the car is used for business (IR-2025-128).
Other business costs, like the business share of your phone, can lower your profit further. See Pub. 463 and IRS: Manage taxes for your gig work.

Credits and state taxes

Credits like the Earned Income Tax Credit can reduce what you owe if you qualify (IRS SE tax page). These examples leave out all credits. State taxes vary. Ohio drivers, for example, may need to make Ohio estimated payments if their expected Ohio tax, after credits and withholding, is more than $500 (Ohio 2026 IT 1040 ES instructions). See the Ohio Department of Taxation for details.

FAQ

Is 30% too much to set aside?

For the hypothetical drivers above, 30% of net profit would have been well above their federal tax. The extra would just be savings you get back later. That said, other income, a higher bracket, or state taxes can push your real rate up, so a cushion isn’t a bad idea. Running your own numbers through the Form 1040-ES worksheet is the most reliable way to know.

Do I pay tax on my gross DoorDash pay or my profit?

Your profit. SE tax starts from Schedule C net profit, which is your earnings minus business expenses such as the mileage deduction (Form 1040-ES (2026)). Your gross earnings still have to be reported in full (IRS).

What mileage rate do I use for 2026?

Use 72.5¢ per business mile for January 1 through June 30, 2026, and 76¢ for July 1 through December 31, 2026 (IRS Standard mileage rates).

Are tips taxed for Dashers?

Tips count as income and are subject to SE tax. Qualified tips may be deductible for income tax purposes under the “no tax on tips” rules, within the limits described above (IRS).

When is my next payment due?

The next federal estimated payment is due January 15, 2027, for income earned September 1 through December 31, 2026 (Form 1040-ES (2026)). See our due dates and how-to-pay guide.

Sources

October 24, 2026

Quarterly Estimated Taxes for Gig Workers: 2026–27 Due Dates and How to Pay

Educational only, not tax advice. GigMoney Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. Your situation may be different, so check with a qualified tax professional before acting. Read our full disclaimer.

Last updated: October 23, 2026. All figures checked against IRS.gov on that date.

If you drive for DoorDash, Uber, or Instacart, or you freelance on the side, nobody is taking taxes out of your pay. That job falls to you, and the IRS expects it in installments during the year, not one big check in April. This guide covers quarterly estimated taxes for gig workers: who has to pay, the 2026–27 due dates, how to stay clear of the underpayment penalty, and exactly how to send a payment.

Quick answer: The next federal due date is January 15, 2027. That payment covers income you earned from September 1 through December 31, 2026 (IRS Form 1040-ES (2026); IRS: Manage taxes for your gig work).

What are quarterly estimated taxes?

The IRS describes estimated tax as the way you pay tax on income that has no withholding, and it specifically lists “earnings from self-employment, including gig economy work” (Form 1040-ES (2026)). Estimated payments cover more than income tax. They also cover self-employment tax, which is the Social Security and Medicare tax that independent contractors pay themselves (IRS: Estimated taxes).

A few basics to know up front:

All gig income is taxable, even if it’s part-time, paid in cash, or never shows up on a 1099 (IRS Gig economy tax center).
If your net earnings from self-employment are $400 or more, you have to file a tax return, even when the gig is only a side job (IRS: Manage taxes for your gig work).
The self-employment tax rate is 15.3%: 12.4% for Social Security plus 2.9% for Medicare (IRS: Self-employment tax). It applies to 92.35% of your net profit, not the full amount (Form 1040-ES (2026), SE tax worksheet).

Do you have to make estimated payments?

For 2026, you generally have to pay estimated tax when both of these are true (Form 1040-ES (2026)):

You expect to owe at least $1,000 for 2026 after subtracting withholding and refundable credits.
You expect your withholding and refundable credits to come in below the smaller of 90% of your 2026 tax or 100% of the tax shown on your 2025 return.

The “no tax last year” exception

You don’t have to pay estimated tax for 2026 if you were a U.S. citizen or resident alien for all of 2025 and had no tax liability for the full 12-month 2025 tax year (Form 1040-ES (2026)).

Have a W-2 job too?

If you also get a paycheck, the IRS says you may be able to skip estimated payments on your gig income by having your employer withhold more. You’d file a new Form W-4, and the Tax Withholding Estimator can help you pick the amount (IRS: Manage taxes for your gig work).

2026–27 estimated tax due dates

The four “quarters” aren’t equal in length. The second covers only two months, and the fourth covers four (IRS: Manage taxes for your gig work).

Tax year 2026 (confirmed by the IRS)

Payment	Income earned during	Due date	Status as of Oct. 23, 2026
1st	Jan. 1 – Mar. 31, 2026	April 15, 2026	Passed
2nd	Apr. 1 – May 31, 2026	June 15, 2026	Passed
3rd	June 1 – Aug. 31, 2026	Sept. 15, 2026	Passed
4th	Sept. 1 – Dec. 31, 2026	Jan. 15, 2027*	Next up

Sources: Form 1040-ES (2026) for the dates; IRS gig work page for the payment periods.

*You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the full balance with it (Form 1040-ES (2026)).

Tax year 2027 (expected, not yet confirmed)

The IRS hadn’t released the 2027 Form 1040-ES as of October 23, 2026. The dates below follow the standard IRS schedule of April 15, June 15, September 15, and January 15, plus the rule that a deadline falling on a Saturday, Sunday, or legal holiday moves to the next business day (IRS: Manage taxes for your gig work). Check them against the 2027 form once it’s out.

Payment	Income earned during	Expected due date
1st	Jan. 1 – Mar. 31, 2027	April 15, 2027 (Thursday)
2nd	Apr. 1 – May 31, 2027	June 15, 2027 (Tuesday)
3rd	June 1 – Aug. 31, 2027	Sept. 15, 2027 (Wednesday)
4th	Sept. 1 – Dec. 31, 2027	January 2028. Jan. 15, 2028 is a Saturday, so the deadline moves to the next business day. Confirm the exact date with the IRS.

Tip: You don’t have to stick to four payments. The IRS says you can pay weekly, every two weeks, or monthly, as long as enough has gone in by the end of each period (IRS: Estimated taxes). Plenty of drivers find a small payment after each weekly payout easier than coming up with a large quarterly one.

How to avoid the underpayment penalty: the safe harbor rules

The IRS can charge a penalty if you don’t pay enough or pay late, even if you end up getting a refund (IRS: Estimated taxes). The penalty runs on each underpayment for every day it stays unpaid (Form 1040-ES (2026)).

Most people avoid the penalty if any one of these is true (IRS: Estimated taxes; Pub. 505 (2026)):

You owe less than $1,000 after withholding and credits, or
You paid at least 90% of this year’s tax, or
You paid at least 100% of last year’s tax. That rises to 110% if your 2025 AGI was over $150,000 ($75,000 if married filing separately) (Form 1040-ES (2026)).

Why the “last year” option helps gig workers: When your income jumps around, guessing 90% of this year’s tax is hard. The prior-year number is already printed on last year’s return, so you know the target from day one. Keep in mind that the safe harbor only protects you from the penalty. If you earned more this year, you’ll still owe the rest when you file (Form 1040-ES (2026), worksheet line 12c caution).

Uneven income? Look at annualizing

If most of your money comes in during one part of the year, the annualized income installment method may lower or eliminate some of your required payments. You file Form 2210 with Schedule AI to use it (Form 1040-ES (2026); Pub. 505, chapter 2).

How much should you pay?

The official tool is the 2026 Estimated Tax Worksheet inside Form 1040-ES. Some 2026 numbers that go into it:

Standard deduction: $16,100 single, $32,200 married filing jointly, $24,150 head of household (IRS, IR-2025-103).
Federal brackets stay at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For a single filer, 10% applies to taxable income up to $12,400 and 12% to the amount over $12,400 up to $50,400 (IR-2025-103; 2026 Tax Rate Schedules in Form 1040-ES).
Social Security wage base: the 12.4% part of SE tax applies to the first $184,500 of combined wages and self-employment earnings in 2026 (Form 1040-ES (2026)).
Half of your SE tax is deductible when you figure adjusted gross income (IRS: Self-employment tax).

To see these numbers worked through with real math, read How Much Should a DoorDash Driver Set Aside for Taxes? (With a Worked Example).

How to pay: step by step

Paying from your bank account directly through the IRS is free (IRS Payments). Here are the main options.

Option 1: Your IRS Online Account (the IRS’s preferred option)

Go to IRS.gov/Account and sign in, or create an account. New users should have a photo ID ready for identity verification.
Choose to make a payment from your bank account, and pick estimated tax for tax year 2026.
Pay the same day, or schedule the payment up to 365 days ahead.
Your history shows up to 5 years of payments, estimated payments included, so you can confirm it went through.

Source: IRS: Online account for individuals; IRS Payments.

Option 2: IRS Direct Pay (no login needed)

Go to IRS Direct Pay and select Make a payment under personal tax payments.
Choose the payment type and reason (estimated tax, Form 1040-ES), then enter tax year 2026.
Verify your identity with details from a prior year’s return. Direct Pay can’t confirm you with the current-year return you’re paying toward.
Enter your bank information, review, and sign.
Save your confirmation number or have it emailed to you. You’ll need it to look up, change, or cancel the payment. Changes or cancellations are allowed until two business days before the payment date.

Source: IRS: Direct Pay help. One catch: Direct Pay won’t work if you’ve never filed a federal return or you’re paying toward your first one. Use your Online Account or another method instead.

Option 3: EFTPS (only if you already have an account)

The IRS’s Electronic Federal Tax Payment System is free, but individual taxpayers can no longer open new EFTPS accounts. Existing users can keep using it for now, and the IRS points individuals to the Online Account instead (IRS: EFTPS).

Option 4: Debit card, credit card, or digital wallet

These work too, but the third-party processors charge a fee (Form 1040-ES (2026); IRS Payments).

Option 5: Check or money order by mail

Use the 2026 payment voucher from Form 1040-ES. There’s one voucher for each due date.
Make it payable to “United States Treasury,” and write “2026 Form 1040-ES” and your SSN on it.
Mail it to the address for your state listed in the form. For example, Ohio residents send it to Internal Revenue Service, P.O. Box 1300, Charlotte, NC 28201-1300.

Watch the postmark. The IRS warns that the postmark is the date USPS processes your envelope at a facility, which may be later than the day you drop it in the mailbox (Form 1040-ES (2026)). If you’re mailing close to the deadline, paying online is the safer choice.

Don’t forget state estimated taxes

Many states with an income tax run their own estimated payment system, and it’s separate from the IRS. Check your state’s tax agency site for its rules.

Ohio drivers: Ohio has its own estimated payments. The Ohio Department of Taxation’s 2026 instructions say you should make them if your expected Ohio tax, minus credits and Ohio withholding, is more than $500. The 2026 Ohio due dates match the federal ones: April 15, June 15, and Sept. 15, 2026, then Jan. 15, 2027 (Ohio 2026 IT 1040 ES instructions). Details and payment options are on the Ohio Department of Taxation estimated payments page.

Missed a payment? What to do now

Pay as soon as you can. The penalty adds up day by day while a payment is unpaid, so paying earlier keeps it smaller (Form 1040-ES (2026)).
Refigure your remaining payments using the worksheet and the “amended estimated tax” steps in Pub. 505, chapter 2.
Check for a waiver. The IRS may waive the penalty in certain cases, such as a casualty, disaster, or other unusual circumstance (IRS: Estimated taxes).

FAQ

Do I have to pay quarterly taxes if I only drive part-time?

Possibly. The test is how much tax you’ll owe, not how many hours you work. If you expect to owe $1,000 or more after withholding and credits, and none of the exceptions apply, estimated payments are generally required (Form 1040-ES (2026)). Separately, $400 or more in net self-employment earnings means you must file a return (IRS).

I didn’t get a 1099. Do I still owe tax on that income?

Yes. The IRS says gig income has to be reported even if it isn’t on a 1099-K, 1099-NEC, or other form (IRS Gig economy tax center).

What’s the easiest way to pay?

For most people, the IRS Online Account or Direct Pay. Both are free, both take payments straight from a U.S. bank account, and both can schedule payments up to 365 days ahead (IRS: Direct Pay help).

Will I get a penalty if I’m getting a refund anyway?

You still can. The IRS says late or too-small estimated payments can trigger a penalty even if you’re due a refund when you file (IRS: Estimated taxes).

Sources

October 24, 2026