Question 1

What is my actual hourly wage after all gig expenses?

Accepted Answer

Most gig drivers earn $10–$15/hour after expenses. The app shows your gross earnings, but your real take-home is significantly lower after subtracting: fuel costs, vehicle wear and tear ($0.21/mile IRS standard), and self-employment taxes (15.3% for SS + Medicare, plus income tax). This calculator shows your true net.

Question 2

What are dead miles and why do they matter?

Accepted Answer

Dead miles are the unpaid miles you drive while positioning, waiting for rides, driving to accept requests, or returning home after a shift. They typically represent 25–40% of total miles driven. Since you're paying for gas and wear on these miles without earning income, they significantly reduce your effective hourly rate.

Question 3

How does self-employment tax work for gig drivers?

Accepted Answer

As a gig worker, you're classified as an independent contractor. You pay both the employer and employee portions of Social Security and Medicare taxes — totaling 15.3% of net self-employment income. On top of this, you owe regular income tax. However, you can deduct vehicle expenses using the standard mileage rate ($0.67/mile for 2024).

Question 4

What mileage rate should I use for taxes?

Accepted Answer

For 2024 taxes, the IRS standard mileage rate is $0.67/mile. This rate covers gas, depreciation, maintenance, insurance, and other operating costs. You can deduct this rate for all business miles driven (paid AND dead miles for gig work). This deduction significantly reduces your taxable income.

Gig Driver Profit Calculator