Quick Answer
Grubhub drivers pay 15.3% self-employment tax plus income tax on net earnings after deductions. A driver earning $25,000 with $4,000 in expenses owes roughly $3,217 in self-employment tax plus income tax on the $21,000 net profit.
Best Answer
James Okafor, Self-Employment Tax Specialist
Best for drivers who rely on Grubhub as their primary or major source of income
How Grubhub earnings are classified for taxes
Grubhub treats drivers as independent contractors, meaning you receive a 1099-NEC form (not a W-2) if you earned $600 or more in 2026. Your total earnings include:
Important: Even if Grubhub doesn't issue a 1099-NEC (earnings under $600), you still must report all income to the IRS.
Tax calculation for Grubhub drivers
Your tax obligation has two parts:
1. Self-employment tax: 15.3% on net earnings (after business deductions)
2. Income tax: Based on your total income and tax bracket
Example: $30,000 Grubhub earnings with $5,000 expenses
Critical deductions for Grubhub drivers
Vehicle expenses are your biggest tax saver. You have two options:
Option 1: Standard mileage deduction (most common)
Option 2: Actual expense method
Other essential Grubhub deductions:
Quarterly estimated tax strategy
As a full-time Grubhub driver, you likely need to make quarterly estimated payments to avoid penalties. Calculate 25-30% of each week's net earnings and set it aside.
2026 quarterly due dates:
Safe harbor calculation: Pay 100% of your 2025 total tax (110% if your 2025 AGI exceeded $150,000) divided by 4 quarters.
State tax considerations
Most states tax Grubhub earnings the same as federal - as self-employment income on Schedule C equivalent forms. However:
Business structure optimization
Once your annual Grubhub income consistently exceeds $40,000-50,000, consider:
LLC formation benefits:
S-Corp election benefits:
What you should do
1. Track mileage religiously - Use apps like MileIQ, Stride, or manual log
2. Save all business receipts - Phone bills, car expenses, delivery supplies
3. Set aside 25-30% of net earnings for taxes
4. Make quarterly payments if you expect to owe $1,000+
5. Consider retirement contributions - SEP-IRA or Solo 401(k) for massive tax savings
6. Keep detailed records for 3+ years
Use our freelance dashboard to track income and expenses across all your gig platforms, and find additional deductions with our deduction finder.
Key takeaway: Grubhub drivers pay 15.3% self-employment tax plus income tax on net profit. Proper expense tracking and quarterly payments are essential - expect 25-35% total tax rate on net earnings.
*Sources: [IRS Publication 334](https://www.irs.gov/pub/irs-pdf/p334.pdf), [IRS Publication 463](https://www.irs.gov/pub/irs-pdf/p463.pdf)*
Key Takeaway: Grubhub drivers owe 15.3% self-employment tax plus income tax on net profits, typically 25-35% total tax rate after deductions.
Grubhub tax scenarios by income level (single filer, 2026)
| Annual Grubhub Income | Est. Expenses | Net Profit | Self-Employment Tax | Income Tax | Total Tax |
|---|---|---|---|---|---|
| $15,000 | $2,500 | $12,500 | $1,914 | $1,500 | $3,414 |
| $25,000 | $4,000 | $21,000 | $3,217 | $2,520 | $5,737 |
| $35,000 | $5,500 | $29,500 | $4,520 | $3,540 | $8,060 |
| $50,000 | $8,000 | $42,000 | $6,431 | $5,040 | $11,471 |
More Perspectives
Alex Torres, Gig Economy Tax Educator
Best for part-time Grubhub drivers with a primary W-2 job
How Grubhub income stacks with your W-2 job
Your Grubhub earnings get added on top of your W-2 income, potentially pushing you into a higher tax bracket. The self-employment tax is always 15.3%, but your income tax rate depends on your combined income.
Example bracket impact:
Withholding vs. quarterly payments
As a side hustler, you have two options to cover Grubhub taxes:
Option 1: Increase W-4 withholding (easier)
Option 2: Quarterly estimated payments
Essential side hustler deductions
Since you're not driving full-time, focus on the biggest deductions:
Skip complex deductions like home office unless you truly use space exclusively for Grubhub business.
Key takeaway: Part-time Grubhub drivers often pay 25-37% tax on profits due to stacking with W-2 income. Increase W-4 withholding to avoid quarterly payment hassles.
Key Takeaway: Side hustlers often pay 25-37% tax on Grubhub profits due to higher marginal rates. Increasing W-4 withholding is usually easier than quarterly payments.
James Okafor, Self-Employment Tax Specialist
Best for first-year Grubhub drivers learning self-employment tax basics
Understanding your first Grubhub tax year
As a new freelancer, the biggest surprise is usually the 15.3% self-employment tax - money that was automatically withheld when you had a W-2 job. This covers your Social Security and Medicare contributions.
The math breakdown:
Good news: You can deduct half of this (the "employer" portion) on your main tax return.
Forms you'll need for your first filing
Simple expense tracking for beginners
Start with these three essential categories:
1. Mileage: Track every mile driven for deliveries ($0.67/mile in 2026)
2. Phone: Estimate business percentage of monthly bill (usually 50%+ for drivers)
3. Delivery supplies: Keep receipts for bags, phone accessories
Don't overcomplicate it your first year - focus on consistent tracking rather than finding every possible deduction.
When you'll owe quarterly payments
If you expect to owe $1,000+ in taxes, you must make quarterly payments. Quick rule of thumb:
Key takeaway: New Grubhub drivers should expect 25-30% total tax on net earnings and start making quarterly payments if earning $400+ monthly to avoid penalties.
Key Takeaway: First-year drivers should expect 25-30% tax on net Grubhub earnings and make quarterly payments if earning $400+ monthly.
Sources
- IRS Publication 334 — Tax Guide for Small Business (Self-Employment)
- IRS Publication 463 — Travel, Gift, and Car Expenses
- Schedule SE Instructions — Self-Employment Tax Instructions
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.