As an Amazon Flex delivery partner you're an independent contractor. Amazon doesn't take tax out of your pay, and it doesn't pay you back for mileage, parking or tolls. You owe income tax and self-employment tax on your profit, and the biggest thing that lowers it is the miles you drive. Gigstrak isn't affiliated with Amazon.
The form Amazon sends
Flex drivers get a Form 1099-NEC. For payments made in 2026, it's sent when Amazon paid you $2,000 or more in the year (it was $600 before). For 2026, the form has a separate box for tips (box 1b). Forms are due by January 31. Even with no form, all of your Flex income is taxable. More on this in 1099 forms for gig drivers.
What you'll owe
- Self-employment tax: 15.3% of most of your net profit, for Social Security and Medicare. It applies once your profit from all self-employment is $400 or more.
- Income tax on your profit, at your normal rate, along with any other income you have.
Your profit is what Amazon paid you minus your business costs, reported on Schedule C. Our quarterly tax calculator gives a quick estimate.
Mileage is the big deduction
Most Flex drivers can use the IRS standard mileage rate: 72.5¢ a mile for business miles driven through June 30, 2026, and 76¢ from July 1. At those rates, 10,000 business miles is worth over $7,000 off your profit. The rate covers gas, repairs, insurance and wear, so you can't deduct those on top of it. See the 2026 mileage rate.
- Count the miles you drive for work: from the pickup location along your route to every stop, and any drive back to return packages.
- Leave out personal driving. If you're not sure about the drive from home to the pickup location, ask a tax professional.
- Keep a log as you go. The IRS expects a record of the date, miles and purpose of each trip, made at the time. Blocks can cover long routes, so these miles add up fast.
Other costs you can deduct
The business share of your phone and plan, a hand cart for heavy packages, and parking and tolls on your route. See the full list of deductions for gig drivers.
Tips
Amazon says you keep 100% of customer tips. Tips are taxable income, but for 2025 through 2028 delivery drivers can deduct up to $25,000 of them from income tax if they meet the rules. From 2026, only tips reported in the tips box of your 1099-NEC count, so check that your Flex tips show there. Self-employment tax still applies to tips. See no tax on tips for drivers.
Pay during the year
If you'll owe $1,000 or more, the IRS expects quarterly payments. The last one for 2026 income is due January 15, 2027. Setting aside 20 to 25% of each payout is a common starting point. See quarterly estimated taxes.
Track it without thinking about it
Gigstrak records your Flex miles automatically, values each one at the IRS rate for its date, and shows what to set aside for taxes. Get Gigstrak on Google Play.
Sources
IRS: Instructions for Forms 1099-MISC and 1099-NEC, Self-employment tax, Publication 463 (car expenses and records) and Announcement 2026-11 (the July 1 rate). Expense and tip details from the Amazon Flex FAQ. Check the tax documents in your Flex account for your own form. This guide is general information, not tax advice.