How much should an Amazon Flex driver set aside?
What this calculator sets aside from a week of earnings, for a single filer in Arizona who drives the miles shown and has no other costs. The share falls as miles go up, because each mile comes off profit before tax.
| Earned in a week | Business miles | Set aside a week | Share |
|---|---|---|---|
| $400 | 150 | $33 | 8.3% |
| $700 | 280 | $86 | 12.3% |
| $1,000 | 400 | $138 | 13.8% |
| $1,400 | 560 | $210 | 15.0% |
Your own share depends on your filing status, state and other costs: enter a typical week in the 1099 tax calculator, or log each payout in the tracker.
How Amazon Flex income is taxed
Amazon Flex delivery partners work as independent contractors, not employees, so Amazon withholds no tax. Your miles and other costs come off first; on what is left you owe self-employment tax of 15.3% (on 92.35% of it) and income tax.
Amazon pays Flex earnings on the weekdays you choose, or right away with Instant Pay, so the money arrives in small amounts all week. Setting aside a share of each payout as it lands is the simplest way to have the quarterly payment ready. Customer tips go to you in full; they are part of your income, and the tips deduction (2025 to 2028) may lower the income tax on them.
Where to find your Amazon Flex tax documents
Amazon posts Flex tax forms on its Tax Central site. Because Amazon pays you directly, the form is a 1099-NEC; box 1 is what Amazon paid you for the year, before any of your costs. Enter it as income, then your miles and other costs separately.
For 2026 pay, a 1099-NEC comes at $2,000 or more (it was $600 through 2025) and a 1099-K once payments pass $20,000 in more than 200 transactions; below that there may be no form, but the income is still taxable.
Amazon Flex tax deductions
| Deduction | 2026 figure | Notes |
|---|---|---|
| Business mileage (standard rate) | $0.725 a mile in this estimate (2026) | From the delivery station to each stop; driving from home to the station may be commuting (Publication 463) |
| Phone bill | Business share of the bill | The share of use that is for the app |
| Phone mount, charger, hand truck, cart | What you paid | Used for blocks |
| Parking and tolls | What you paid | While on a block |
| Half of self-employment tax | Worked out for you | Comes off before income tax |
With the standard mileage rate, gas, repairs and insurance are covered by the rate, so they are not added on top. Keep a mileage log with the date, miles and purpose (IRS Publication 463); the tracker can download one.
An example
Example. A single Amazon Flex driver in Arizona earns $36,000 in 2026. 16,000 business miles, the business share of the phone bill and a hand cart bring business expenses to $12,640, so net earnings are $23,360.
Self-employment tax is $3,301. After half of it, the $16,100 standard deduction and a QBI deduction of $1,122, taxable income is $4,488 and federal income tax is $449. Arizona income tax at its flat rate of 2.50% is $140.
Total estimated tax is $3,890: about $75 a week to set aside, or $972 a quarter, with the rules on the methodology page.
Amazon Flex tax questions
Does Amazon Flex take out taxes?
No. Amazon pays Flex delivery partners as independent contractors, so the payout is the whole amount and no tax is withheld. With daily payouts or Instant Pay the money arrives a little at a time, which makes a fixed share of each payout easier to keep than one large sum each quarter.
Can I deduct gas as an Amazon Flex driver?
Not on top of the standard mileage rate: the rate already covers gas, repairs and depreciation (IRS Publication 463). You deduct either your business miles times the rate or your actual car costs, not both. Parking and tolls paid during a block are added separately.
Do the miles to the delivery station count?
Often not. Driving from home to the first place you work is usually commuting under Publication 463, unless your home is your main place of business. The miles from the station to each stop, and between stops, are business miles.
Are Amazon Flex tips taxed?
Yes. Amazon passes customer tips to you in full, and they are part of your income. For 2025 to 2028, qualifying tips may be deducted from income tax (up to $25,000), though self-employment tax still applies to them.
Quarterly payments
Nobody withholds tax from Amazon Flex pay, so the IRS expects estimated payments for 2026 on April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. The annual calculator shows your next payment and how to pay it.
Before you rely on it
This page and the calculator give estimates for planning, not tax advice. GigWorkerTax is an independent site and is not affiliated with or sponsored by Amazon Flex, and not connected to the IRS. Amazon Flex is a trademark of its owner, used here only to say who this page is for. See the disclaimer.
For every deduction, credits and your next IRS payment, open the annual calculator set up for Amazon Flex.
Sources, checked October 8, 2026: Amazon Flex FAQ (payments and tips) · IRS: Understanding your Form 1099-K · IRS Gig Economy Tax Center · IRS Publication 463 (car expenses).