Amazon Flex drivers are independent contractors, which means Amazon does not withhold any taxes from your earnings. Every dollar you earn is subject to both self-employment tax and federal income tax — and if you don’t plan ahead, the bill at tax time can be a painful surprise. This guide covers exactly what Amazon Flex drivers owe in 2026, what deductions are available, and how to avoid underpayment penalties.
Amazon Flex Tax Overview (2026)
Tax Type
Rate
Notes
Self-employment tax
15.3%
On 92.35% of net earnings
Federal income tax
10%– 37%
Based on total taxable income
State income tax
0%–13.3%
Depends on your state
Self-Employment Tax: 15.3%
As an Amazon Flex driver, you pay self-employment (SE) tax of 15.3% on 92.35% of your net profit. This covers Social Security (12.4%) and Medicare (2.9%). The reason it’s applied to 92.35% rather than 100% is because the IRS allows you to deduct half of SE tax before calculating it.
Example: You earned $20,000 net from Flex in 2026. SE tax base = $20,000 × 92.35% = $18,470. SE tax = $18,470 × 15.3% = $2,826.
Amazon Flex Tax Deductions You Can Claim
The key to reducing your Amazon Flex tax bill is tracking every eligible business expense. These deductions reduce your net profit, which lowers both your self-employment tax and income tax.
The IRS standard mileage rate for 2026 is 70 cents per mile (rate subject to annual adjustment). For every business mile you drive — from your first pickup to your last delivery — you can deduct $0.70. Personal miles (home to warehouse) are not deductible.
Example: You drove 12,000 business miles in 2026. Mileage deduction = 12,000 × $0.70 = $8,400 deduction.
Other Deductible Expenses
Phone bill (business use percentage)
Phone mount, car charger, delivery bags, hand truck
Car washes (if vehicle is used for deliveries)
Parking fees and tolls paid during deliveries
Health insurance premiums (if self-employed)
Half of your self-employment tax (automatic deduction)
Quarterly Estimated Tax Payments
Because Amazon doesn’t withhold taxes, you’re required to pay quarterly estimated taxes if you expect to owe $1,000 or more for the year. Missing these payments results in an underpayment penalty.
Quarter
Income Period
Due Date
Q1
Jan 1 – Mar 31
April 15, 2026
Q2
Apr 1 – May 31
June 16, 2026
Q3
Jun 1 – Aug 31
September 15, 2026
Q4
Sep 1 – Dec 31
January 15, 2027
A simple rule of thumb: set aside 25–30% of every Flex payment into a separate savings account for taxes. Use our Amazon Flex tax calculator to estimate your exact quarterly payment.
Frequently Asked Questions
Does Amazon Flex send a 1099?
Yes. If you earned $600 or more from Amazon Flex in a calendar year, Amazon will send you a 1099-NEC form by January 31. You must report this income on Schedule C of your federal tax return even if you don’t receive a 1099.
How much should I set aside for taxes as an Amazon Flex driver?
Set aside 25–30% of your gross Flex earnings for taxes. This covers self-employment tax (15.3%) and federal income tax. If you live in a high-tax state like California, set aside closer to 35%.
