How much should a Grubhub driver set aside?
What this calculator sets aside from a week of earnings, for a single filer in North Carolina 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 | $88 | 12.6% |
| $1,000 | 400 | $143 | 14.3% |
| $1,400 | 560 | $219 | 15.7% |
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 Grubhub income is taxed
Grubhub delivery partners are independent contractors, so no tax is withheld from what Grubhub pays you. You owe self-employment tax of 15.3% on most of your profit, plus federal and state income tax, after business costs.
Where to find your Grubhub tax documents
Grubhub sends a 1099 form early in the year when your pay reaches the reporting amounts below; which form you get depends on how you were paid. Whatever the form, the amount in it is your gross pay before costs. Enter that as income, and 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.
Grubhub tax deductions
| Deduction | 2026 figure | Notes |
|---|---|---|
| Business mileage (standard rate) | $0.725 a mile in this estimate (2026) | From accepting an order through pickup and drop-off |
| Phone bill | Business share of the bill | The share of use that is for the app |
| Insulated bags | What you paid | Used only for deliveries |
| Parking and tolls | What you paid | While on a delivery |
| Half of self-employment tax | Worked out for you | Comes off before income tax |
Restaurant and customer tips count as income. As a food delivery driver you may qualify for the tips deduction (2025 to 2028); the conditions are in the annual calculator. Keep a mileage log with the date, miles and purpose (IRS Publication 463).
An example
Example. A single Grubhub driver in North Carolina earns $28,000 in 2026. 12,000 business miles, the business share of the phone bill and insulated bags bring business expenses to $9,604, so net earnings are $18,396.
Self-employment tax is $2,599. After half of it, the $16,100 standard deduction and a QBI deduction of $400, taxable income is $596 and federal income tax is $-127. North Carolina income tax at its flat rate of 3.99% is $40.
Total estimated tax is $2,512: about $48 a week to set aside, or $628 a quarter, with the rules on the methodology page.
Grubhub tax questions
Does Grubhub take out taxes?
No. Grubhub pays delivery partners as independent contractors and withholds nothing, so the tax on your profit is yours to set aside and pay.
Are Grubhub tips taxed?
Yes. Tips from customers through the app are income, and they count toward your earnings. As a food delivery driver you may be able to deduct qualifying tips from income tax for 2025 to 2028; self-employment tax still applies to them.
Can I deduct car insurance and gas?
Only one way at a time. With the standard mileage rate, insurance, gas, repairs and depreciation are already covered; with actual expenses you deduct the business share of each instead (Publication 463). Parking and tolls on a delivery are separate either way.
Do I owe tax if I made less than the 1099 amount?
Yes. Below the reporting amount you may get no form, but the income is still taxable. Self-employment tax starts once your net earnings for the year reach $400 (Schedule SE).
Quarterly payments
Nobody withholds tax from Grubhub 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 Grubhub, and not connected to the IRS. Grubhub 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 Grubhub.
Sources, checked October 8, 2026: IRS: Understanding your Form 1099-K · IRS Gig Economy Tax Center · IRS Publication 463 (car expenses).