As a Grubhub driver you're an independent contractor, so Grubhub doesn't take tax out of your pay. 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 Grubhub.
The form Grubhub sends
Grubhub drivers usually get a Form 1099-NEC. Its total covers your delivery pay, including tips customers paid in the app. For payments made in 2026, it's sent when Grubhub paid you $2,000 or more in the year (it was $600 before), and the form has a separate box for tips (box 1b). Grubhub processes the forms at the end of January, and you can find yours in the Grubhub for Drivers app or the Driver Portal. Even with no form, all of your Grubhub 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 Grubhub paid you minus your business costs, reported on Schedule C. Our quarterly tax calculator gives a quick estimate.
Mileage is the big deduction
Most Grubhub 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: to the restaurant, to the customer, and between orders while you're available for offers.
- Leave out personal driving. If you're not sure about the drive from home to your first order, 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. Grubhub doesn't send you a record of your miles, so your own log is the only one you'll have.
Part of each offer is paid by distance, but that's pay, not a refund for your car. It's income like the rest, and you still deduct your miles in full.
Other costs you can deduct
The business share of your phone and plan, insulated bags, and parking and tolls on orders. See the full list of deductions for gig drivers.
Tips
Tips are taxable income, including cash tips that aren't on your 1099. For 2025 through 2028 delivery drivers can deduct up to $25,000 of tips from income tax if they meet the rules. From 2026, only tips reported in the tips box of your 1099-NEC count, and the form also lists an occupation code for them. A code of 000 means the tips don't qualify. 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 Grubhub 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). Form timing from Grubhub's driver support article How will I receive my 1099 form? This guide is general information, not tax advice.