Gig Worker Mileage and IRS Rates: Planning Net Hourly With Published Mileage Rules
Gig drivers often mix planning math with tax filing questions. The IRS publishes an optional standard mileage rate for business use. For 2026, IRS Notice 2026-10 and the IRS newsroom announced 72.5 cents per mile for business use, up 2.5 cents from 2025. This guide is for net-hourly planning and recordkeeping orientation, not tax filing advice.
2026 IRS standard mileage rate (published)
The IRS announced the 2026 optional standard mileage rate for business use at 72.5 cents per mile, effective January 1, 2026 (IRS newsroom, December 2025; Notice 2026-10). The rate is optional; taxpayers may use actual expense methods instead per IRS guidance. Sidequity’s gig mileage calculator lets you enter your own cost per mile for operating planning.
Illustrative planning: 400 business miles monthly at $0.725 IRS business rate is $290 of deductible value for tax purposes if you qualify to use that method. For net hourly tonight, you still subtract your real gas and wear per mile from gig gross. A $500 gross week with $120 vehicle costs is $380 before reserve, not $500.
What to log each shift
- Date and odometer or app miles for the shift.
- Purpose: delivery, rideshare, between jobs, or personal (personal miles stay out of business totals).
- Gross payouts including tips for the same shift.
- Gas and tolls paid that day if you use actual-cost planning.
- Clock hours from first accepted offer to last drop-off.
W-2 commute vs gig miles
IRS materials on the standard mileage rate note limits on employee business mileage deductions for commuting. Gig workers reporting self-employment income follow different rules than W-2 commuters deducting unreimbursed employee travel. Read IRS Manage taxes for your gig work and talk to a preparer about your facts.
Using mileage in net hourly
For deciding whether to drive tonight, use operating cost per mile you actually spend or a conservative wear-plus-gas estimate from a logged week. Run gig-mileage-cost with weekly miles and gross. Read how to track mileage for gig work for a simple log template mindset.
When mileage logging pays off
- You drive regularly for apps or mobile local work.
- Dead miles between offers are large enough to move net hourly.
- You want clean records if a preparer asks later.
- You compare apps on the same mile totals.
Sidequity takeaway
Gig mileage planning is worth it when every logged mile changes whether you keep driving. IRS rates help tax conversations; net hourly tonight needs your real costs. Run gig-mileage-cost after one shift, then read is gig mileage worth it and which delivery app pays more.
Suggested next steps
- Log one full shift before you add a second app.
- Compare IRS published rate to your actual cents-per-mile spend.
- Run doordash-earnings with the same miles you logged.
- Read w2 job and side hustle taxes together if you also have a day job.
This is an estimate, not advice
Every result here is a rough model based only on the numbers you enter. Sidequity is an informational tool and does not provide professional, tax, legal, investment, or financial advice, and it makes no income guarantees. Any tax set-aside is a planning placeholder, not a tax calculation.
For decisions that affect your money, taxes, or business, review your situation with a qualified professional. See our full disclaimer.
Frequently asked questions
What is the IRS mileage rate for 2026?
IRS announced 72.5 cents per mile for business use starting Jan. 1, 2026.
Can I use the IRS rate in Sidequity calculators?
You can enter any cost per mile. Many users use actual gas and wear estimates for net hourly.
Is this tax advice?
No. Confirm deduction eligibility with IRS publications and a qualified preparer.
This guide was last updated June 2, 2026. Back to all guides.