The app shows gross pay. This shows what a New York driver actually keeps after the car, the IRS, and Albany.
Gross hourly
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Vehicle cost (72.5¢/mi)
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Self-employment tax
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Est. federal income tax
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Est. NY state tax
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Your TRUE hourly pay
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Tracking every mile is worth real money
At 72.5¢/mi, a driver logging 15,000 miles/year deducts $10,875 from taxable income. A mileage tracking app does it automatically. Compare mileage trackers →
How this calculator works
Your true hourly pay is what's left after costs the apps never show. We subtract vehicle cost at the 2026 IRS standard mileage rate of 72.5¢ per mile, then self-employment tax (15.3% on 92.35% of profit), federal income tax, and New York state income tax at the rate you pick (most drivers fall in the 4%–6.85% brackets). New York City residents also owe city income tax of roughly 3–3.9% — pick the combined option to approximate it.
NYC minimum pay rules — who they cover
Inside New York City, app delivery workers must be paid a minimum rate per active hour (about $21 in 2025, adjusted annually), and rideshare drivers are covered by TLC per-trip minimums. Two catches: the rules apply only inside NYC — there is no minimum upstate or on Long Island — and "active time" excludes waiting, so whole-shift hourly pay still depends on how busy you stay. Apps have also responded with scheduling and lock-in changes, so measure your own real numbers above rather than assuming the floor.
Tolls and congestion
Bridge and tunnel tolls plus Manhattan congestion pricing can take a real bite out of a driving day. Business tolls are deductible on top of the mileage rate — log them.
Gross pay in NYC is among the highest in the country thanks to minimum pay rules, but after vehicle costs (72.5¢/mi), self-employment tax, federal tax, NY state tax, and — for city residents — NYC city tax, realistic net is often $12–18/hour in the city and lower upstate.
What is the NYC minimum pay for delivery workers?
New York City requires delivery apps to pay a minimum rate per active hour — about $21 in 2025, adjusted annually. It only covers time on a trip, only applies inside NYC, and apps have adjusted scheduling in response, so measure your whole-shift pay rather than assuming the floor.
Do New York gig drivers pay state income tax?
Yes. Gig profit is taxed by New York State at your regular bracket (4%–10.9%; most drivers 4–6.85%), and New York City residents owe an additional city income tax of roughly 3–3.9%. Mileage deductions reduce federal, state, and city taxable income.
Estimates for educational purposes only — not tax, legal, or financial advice. State rules and rates change; consult a tax professional about your situation.