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How Much Do Rideshare and Delivery Drivers Really Make After Expenses?
$25 an hour on the app isn't $25 in your pocket. A walk-through of gas, wear and self-employment tax with real numbers.
App pay is revenue, not profit. As a contractor you pay for the car and both halves of Social Security and Medicare. Here's what that looks like for a typical part-time driver.
An example week
Say you drive 20 hours, gross $24 an hour including tips, and cover 18 miles per hour of driving (including miles between trips) in a car that gets 28 mpg with gas at $3.20.
| Gross pay | $480 |
|---|---|
| Miles driven | 360 |
| Gas (360 ÷ 28 × $3.20) | −$41 |
| Wear, tires, repairs, depreciation (20¢/mile) | −$72 |
| Self-employment tax (after mileage deduction) | −$29 |
| You keep | about $338 ($16.90/hr) |
Federal and state income tax still apply on top of that, depending on your total income.
Why the mileage deduction matters so much
The IRS lets you deduct 76¢ for every business mile driven from July through December 2026 (72.5¢ from January through June). In the example above, 360 miles is a $274 weekly deduction, which is why the self-employment tax is so small. Drivers who don't track miles pay far more tax.
Three ways to keep more
- Drive a fuel-efficient car. A hybrid can add $2 to $4 an hour.
- Cut empty miles by staying near busy areas.
- Track every mile from the moment you open the app.
Why "upkeep" is the cost people forget
Gas is easy to notice because you pay at the pump. Tires, brakes, oil changes and the car losing value happen slowly, then all at once. Setting aside about 15 to 25 cents for every mile you drive for work keeps a surprise repair from wiping out a month of profit.
Your costs depend on your car
| Vehicle | Gas cost per mile at $3.20/gal |
|---|---|
| Hybrid (50 mpg) | 6.4¢ |
| Compact sedan (32 mpg) | 10¢ |
| Midsize SUV (24 mpg) | 13.3¢ |
| Pickup (18 mpg) | 17.8¢ |
Over 360 miles a week, the difference between a hybrid and a pickup is about $41 in gas alone.
How this compares with an employee job
Our example driver keeps about $17 an hour before income tax. An Amazon DSP driver earning $21 an hour doesn't pay for the van and has half of Social Security and Medicare paid by the employer. For some people, a W-2 job pays more in the end even though the app number looks higher.
Frequently asked questions
Is 20 cents a mile for upkeep realistic? For a paid-off, reliable sedan it's a reasonable starting point. Newer or financed cars lose value faster; older cars need more repairs.
Do I pay income tax too? Yes, on your profit, at your normal rate. How much depends on your total income for the year.
Bottom line
Judge any driving app by what you keep per hour, not what it pays. Track your miles, know your car's real costs, and compare against employee jobs before deciding.
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