How Much Should Gig Workers Set Aside for Taxes? (2026)
By TraxGig Team · June 9, 2026 · 8 min read
It is the question every new gig worker asks: "How much of my earnings should I actually save for taxes?" Save too little and April hurts. Save too much and you starve your cash flow all year. This guide gives you a clear answer and shows you how to fine-tune it.
The short answer: 25–30%
For most gig workers, setting aside 25% to 30% of your net earnings (what is left after deductions) is the sweet spot. That range covers:
- The 15.3% self-employment tax
- Federal income tax (typically 10–22% for most drivers)
- State income tax, where applicable
If you have little or no other income, 25% is often enough. If you have a spouse with a good salary, a high-earning year, or live in a high-tax state like California or New York, lean toward 30% or more.
Set aside on net earnings, not gross. Your mileage and expense deductions reduce the income you owe tax on — sometimes by 40% or more — so saving a flat percentage of gross usually means over-saving.
A real example
Let us say Maria drives for Uber and DoorDash part-time and earns $2,000 in gross income in a month. Here is how her set-aside actually works out:
| Line item | Amount |
|---|---|
| Gross earnings | $2,000 |
| Mileage deduction (800 mi × IRS rate) | − $560 |
| Phone + supplies | − $90 |
| Net taxable profit | $1,350 |
| Set aside @ 28% | $378 |
Without tracking her 800 miles, Maria might have set aside 28% of the full $2,000 — $560. By tracking deductions, she keeps an extra $182 this month working for her instead of sitting idle, while still being fully covered at tax time.
How to set the right percentage for you
- Start at 28%. A safe middle-ground default for most part-time and full-time drivers.
- Add ~5% if you are in a high-tax state or expect a high total household income for the year.
- Subtract a few points if gig work is your only income and it is modest — your effective rate will be lower.
- Revisit after your first quarter. Once you see your real numbers, you can dial it in precisely.
Where to keep the money
Knowing the number is only half the battle — the money has to actually be there in April. The most reliable approach:
- Open a separate savings account just for taxes.
- Transfer your set-aside every week, not once a year, so it never gets spent.
- Pay your quarterly estimates directly from that account so the balance stays honest.
Let the math run itself
Doing this by hand every week is exactly where most people slip. TraxGig tracks your income and deductions automatically and shows your estimated taxes and recommended set-aside in real time — so you always know the right number without doing the math yourself.
Want your set-aside calculated for you as you earn? Create a free TraxGig account and connect your apps in under two minutes.
Related reading
- Uber & DoorDash Taxes: The Complete 2026 Guide
- Mileage Deduction for Gig Workers: Maximize Your Write-Off
This article is for general educational purposes and is not tax advice. Consult a qualified tax professional about your specific situation.