GigWageTruth

Methodology: The Math Behind the Truth

Last updated: February 2026. Data Source: Official IRS Mileage Rates

1 Gross Revenue

This is the "big number" the apps show you. It includes your trip fares, tips, and bonuses. Most drivers stop here and think this is their income. It isn't.

2 Vehicle Expenses (The Silent Killer)

Your car is not free. Every mile you drive costs money in gas, tires, oil changes, and most importantly, depreciation.

IRS Standard Method

We use the 2026 IRS Standard Mileage Rate of $0.725 per mile. This is the government's official estimate of what it costs to operate a vehicle for business.

Actual Expense Method

If you select "My Vehicle", we calculate precise costs:
• Gas: (Miles / MPG) × Gas Price
• Depreciation: ~$0.15/mile (varies by car)
• Maintenance: ~$0.12/mile

3 Self-Employment Tax

Unlike W-2 employees, gig workers must pay the full FICA tax (Social Security + Medicare).
Rate: 15.3% of your net profit.

Note: We apply this tax only to your profit (Revenue - Deductions), which is how the IRS calculates it. This is why tracking miles is crucial—it lowers your taxable income!

The Golden Formula

Net Profit = Gross - (Miles × Cost/Mile) - Taxes