Gig work tax set-aside
If you drive, deliver, or do other gig work, you're usually paid as a contractor. That means no taxes are taken out. You still owe them, including Self-employment taxSocial Security and Medicare tax for people who work for themselves, like gig workers. It's about 15% of your earnings after expenses.More in the glossary for Social Security and Medicare.
Setting aside part of every payout keeps a big tax bill from surprising you.
Your results
- Set aside about
- 25%
- From every $100 you earn
- $25
- For the year
- $3,750
What this means
- Self-employment tax is about 14.1% of your earnings after expenses. On $15,000, that's $2,119.43.
- Adding 10% for income tax, set aside about 25% of each payout, or $25 from every $100.
- Move the set-aside amount into a separate savings account each time you get paid.
- Keep track of your expenses, like mileage, phone, and supplies. They lower the income you pay tax on.
If you'll owe a lot, the IRS may expect you to pay during the year, not just at tax time. Free tax help (VITA) can help you figure out what to do.
These figures are for 2025 tax returns (filed in 2026). We'll update them when the IRS publishes the numbers for 2026.
Where to get free help
- Free tax help (VITA and TCE)
IRS-certified volunteers prepare and file tax returns for free for people with low to moderate incomes, people with disabilities, people who speak limited English, and older adults. Most sites are open during tax season.
- GetYourRefund
File for free with help from IRS-certified volunteers, remotely, or use free software to file yourself.