Our calculator follows the steps of a 2026 federal return, then adds state and local tax. Every result on the site shows these lines. You can check them with our verified examples.
How gig driver taxes are calculated: federal steps
Mileage deduction (Schedule C, line 9). Miles from January 1 to June 30 × $0.725, plus miles from July 1 to December 31 × $0.76.
Net profit (Schedule C, line 31). Gig earnings − mileage − other expenses. In Hawaii we also subtract the general excise tax, which is a deductible business tax.
Self-employment tax (Schedule SE). Net profit × 92.35%. If that is under $400, there is no self-employment tax. Social Security is 12.4% of it, up to $184,500 minus any W-2 wages. Medicare is 2.9% of all of it.
Additional Medicare tax (Form 8959). 0.9% of earnings above $200,000 ($250,000 married filing jointly), counting wages first.
Adjusted gross income. Wages + net profit − half of self-employment tax (not the 0.9%).
Tips deduction (Schedule 1-A). The smallest of qualified tips, $25,000 and net profit, reduced by $100 for each full $1,000 of income above $150,000 ($300,000 married filing jointly).
Standard deduction. $16,100 single, $24,150 head of household, $32,200 married filing jointly.
Business income deduction (Form 8995). 20% of net profit after the self-employment tax deduction, limited to 20% of taxable income. Above $201,750 of taxable income ($403,500 married filing jointly) it shrinks to zero over the next $75,000 ($150,000), because gig drivers have no employees. If business income is at least $1,000, the deduction is at least $400.
Income tax. Taxable income through the 2026 brackets for your filing status.
Child Tax Credit (Schedule 8812). $2,200 per child under 17, reduced by $50 per $1,000 above $200,000 ($400,000 married filing jointly). Up to $1,700 per child is refundable, limited to 15% of earned income above $2,500.
Earned Income Tax Credit. 2026 amounts from Rev. Proc. 2025-32, based on earned income (wages plus net profit minus half of self-employment tax) and the number of children.
Extra tax from gig work. If you enter W-2 wages, we subtract the tax on your wages alone, which your paycheck withholding is assumed to cover.
Set-aside figures. Per $100 = extra tax ÷ gig earnings × 100. Per week = extra tax ÷ 52.
For each state we use its 2026 brackets, standard deduction, personal exemptions and personal credits from the Tax Foundation’s 2026 state table (California from the Franchise Tax Board’s 2026 indexing). Most states start from federal adjusted gross income; Pennsylvania and New Jersey tax net profit directly. Head of household filers use single amounts unless a state sets its own. Where a state hasn’t published 2026 inflation adjustments, we use its latest published amounts. Hawaii also charges a general excise tax of 4% plus a 0.5% county surcharge on gross receipts; we add 4.5% of your gig earnings and deduct it as a business expense.
State
Income tax on gig profit
Local tax option
Alabama
2% to 5%
Yes
Alaska
No income tax
No
Arizona
Flat 2.5%
No
Arkansas
2% to 3.9%
No
California
1% to 12.3%
No
Colorado
Flat 4.4%
Yes
Connecticut
2% to 6.99%
No
Delaware
2.2% to 6.6%
Yes
District of Columbia
4% to 10.75%
No
Florida
No income tax
No
Georgia
Flat 5.19%
No
Hawaii
1.4% to 11%
General excise tax 4.5%
Idaho
Flat 5.3%
No
Illinois
Flat 4.95%
No
Indiana
Flat 2.95%
Yes
Iowa
Flat 3.8%
Yes
Kansas
5.2% to 5.58%
No
Kentucky
Flat 3.5%
Yes
Louisiana
Flat 3%
No
Maine
5.8% to 7.15%
No
Maryland
2% to 6.5%
Yes
Massachusetts
5% to 9%
No
Michigan
Flat 4.25%
Yes
Minnesota
5.35% to 9.85%
No
Mississippi
Flat 4%
No
Missouri
2% to 4.7%
Yes
Montana
4.7% to 5.65%
No
Nebraska
2.46% to 4.55%
No
Nevada
No income tax
No
New Hampshire
No income tax
No
New Jersey
1.4% to 10.75%
No
New Mexico
1.5% to 5.9%
No
New York
3.9% to 10.9%
NYC option
North Carolina
Flat 3.99%
No
North Dakota
1.95% to 2.5%
No
Ohio
First $250,000 of business income exempt
Yes
Oklahoma
2.5% to 4.5%
No
Oregon
4.75% to 9.9%
Yes
Pennsylvania
Flat 3.07%
Yes
Rhode Island
3.75% to 5.99%
No
South Carolina
3% to 6%
No
South Dakota
No income tax
No
Tennessee
No income tax
No
Texas
No income tax
No
Utah
Flat 4.5%
No
Vermont
3.35% to 8.75%
No
Virginia
2% to 5.75%
No
Washington
No income tax
No
West Virginia
2.22% to 4.82%
No
Wisconsin
3.5% to 7.65%
No
Wyoming
No income tax
No
What we simplify
State tax estimates don’t apply the federal tips deduction or state credits, so they may be slightly high.
New York’s and Connecticut’s recapture of lower brackets for high earners isn’t included.
Credits assume you qualify (valid SSN, investment income under $12,200, and age 25 to 64 for the Earned Income Tax Credit without children).
We don’t include itemized deductions, retirement contributions, health insurance or other income.
Treat every result as a planning estimate. Last reviewed October 29, 2026.
