How do Grubhub drivers handle taxes and mileage in 2026?
Grubhub drivers are independent contractors: no tax is withheld, you report profit on Schedule C and pay self-employment tax (15.3% on 92.35% of net earnings) plus income tax. The biggest deduction is business mileage: 72.5¢ a mile for January–June 2026 and 76¢ a mile for July–December 2026. Tips may also qualify for the new federal tips deduction, and if you expect to owe $1,000 or more, estimated payments are due April 15, June 15 and September 15, 2026, and January 15, 2027.
Your 1099 from Grubhub
- Grubhub reports driver pay on a 1099 form, usually delivered electronically. Watch your email and the app for tax-document instructions and keep your address and tax ID current.
- For payments made in 2026, the federal 1099-NEC reporting threshold rose from $600 to $2,000. A form or no form, all income is taxable.
- The total generally includes delivery pay, bonuses, contribution and adjustment pay, and tips paid through the app. Compare it with your weekly pay statements.
More on forms and thresholds in the 1099 guide; the rules are the same for any delivery app.
Mileage: the 2026 rate changes mid-year
| Miles driven | IRS standard rate | Example: 6,000 miles |
|---|---|---|
| January 1 – June 30, 2026 | 72.5¢/mile | $4,350 |
| July 1 – December 31, 2026 | 76¢/mile | $4,560 |
Log the date and miles for each half separately. Deductible miles generally include the drive to your first pickup when you are working, miles between orders and the drive back toward your zone, not only the miles Grubhub shows on an order. Use a mileage app or a written log kept at the time. Details, including which miles count, are in the mileage deduction guide.
Prop 22's $0.37 per engaged mile in California is pay, not a reimbursement: it is taxable income, and you still deduct your business miles.
Other deductions drivers miss
- Phone and data plan (business share), phone mount and chargers.
- Insulated bags, catering carriers and drink holders.
- Instant Cash Out fees ($0.50 per transfer for non-Chase banks).
- Tolls and paid parking on deliveries (on top of the standard mileage rate).
- Bike or e-bike costs if you deliver without a car (actual expenses; the mileage rate is for cars).
The full list is in delivery tax deductions.
Tips and the new federal deduction
The 2025 tax law created a deduction of up to $25,000 a year for qualified tips in listed occupations, for 2025 through 2028, reduced above $150,000 modified AGI ($300,000 joint). The final IRS list includes goods delivery, and self-employed workers can qualify, so many Grubhub drivers are likely to fit. It lowers income tax only; tips are still subject to self-employment tax. See no tax on tips for delivery workers for the rules and records you need. Grubhub's weekly statements show tips separately, so save them.
Quarterly estimated taxes
| Income earned | Payment due |
|---|---|
| January – March 2026 | April 15, 2026 |
| April – May 2026 | June 15, 2026 |
| June – August 2026 | September 15, 2026 |
| September – December 2026 | January 15, 2027 |
A simple habit: move 20–25% of each payout to a separate account. How to size payments is in quarterly taxes for delivery workers.
Watch: 2026 tax changes for gig workers
Driven Wyld walks through what changed for gig workers in 2026, as he lists it: the new $2,000 1099 reporting threshold, why fewer forms does not mean less IRS scrutiny, how mileage deductions changed from 2024 to 2026, and what "no tax on tips" means for drivers. Check any rate he mentions against the IRS figures above.
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Example (illustrative)
A driver earns $24,000 from Grubhub in 2026 (including $7,000 in tips) and logs 9,000 business miles, 4,500 in each half of the year. Mileage deduction: 4,500 × $0.725 + 4,500 × $0.76 = $6,682.50. Net profit before other expenses: $17,317.50. Self-employment tax is about 15.3% × 92.35% × $17,317.50 ≈ $2,447, before income tax. The qualified tips deduction could then lower taxable income by up to $7,000 if the tips qualify.
Frequently asked questions
What tax form does Grubhub send drivers?
Grubhub reports driver pay on a 1099 form, usually electronically. For payments made in 2026, the federal 1099-NEC reporting threshold is $2,000, but all income is taxable whether or not you receive a form.
What is the 2026 mileage rate for Grubhub drivers?
72.5 cents per mile for January 1 to June 30, 2026 and 76 cents per mile for July 1 to December 31, 2026, under IRS Announcement 2026-11.
Can Grubhub drivers deduct tips under no tax on tips?
Many likely can: the final IRS rules list goods delivery and allow self-employed workers to qualify, up to $25,000 a year for 2025 to 2028. Tips still count for self-employment tax. Confirm with a tax professional.
Do Grubhub drivers have to pay quarterly taxes?
If you expect to owe $1,000 or more for the year, the IRS generally expects estimated payments. For 2026 they are due April 15, June 15 and September 15, 2026, and January 15, 2027.
Go deeper. Chapter 11 of the Grubhub Driver Playbook covers 1099 forms, the 2026 mileage split, deductions, quarterly estimates and the qualified tips deduction, with a records system you can set up in an evening. Get the Grubhub e-book or read chapters 1–2 free.
Related guides
- How does Grubhub pay drivers in 2026?
- Which Grubhub offers are worth accepting?
- What do real Grubhub drivers show in their field videos?