Quarterly Estimated Taxes: How Your Mileage Lowers What You Pay
Self-employed and gig drivers pay tax four times a year — for 2026 the dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Business miles lower the profit those payments are based on, so an up-to-date mileage log is the difference between paying what you owe and lending the IRS money until next April.
Nobody withholds tax from a 1099 paycheck. If you drive for DoorDash, Uber or Instacart, sell real estate, or run any business out of your car, the IRS expects you to pay as you go through quarterly estimated payments. And because those payments are based on profit, not revenue, your mileage deduction is one of the biggest numbers in the calculation.
The 2026 due dates
| Payment | Covers income earned | Due |
|---|---|---|
| 1st quarter | January 1 – March 31 | April 15, 2026 |
| 2nd quarter | April 1 – May 31 | June 15, 2026 |
| 3rd quarter | June 1 – August 31 | September 15, 2026 |
| 4th quarter | September 1 – December 31 | January 15, 2027 |
The "quarters" are not equal — the second covers two months and the fourth covers four. When a date falls on a weekend or a federal holiday, the payment is due the next business day.
Who has to pay
In general, you need to make estimated payments if you expect to owe at least $1,000 in federal tax for the year after subtracting withholding and credits. A common way to stay clear of the underpayment penalty is the safe harbor: pay in at least 90% of this year's tax, or 100% of last year's (110% if last year's adjusted gross income was over $150,000). Your preparer can tell you which one fits your situation.
Why miles move the number
Self-employed income is taxed twice over: ordinary income tax, plus self-employment tax of 15.3% for Social Security and Medicare on most of your net earnings. A business mile reduces the net earnings both taxes are figured on.
A worked example
Say you drive 6,000 business miles in the first half of 2026 and 6,000 in the second. At 72.5 cents through June 30 and 76 cents after, that is $4,350 + $4,560 = $8,910 off your profit. Self-employment tax alone on that amount is roughly $1,260 — before counting income tax at your bracket. Leave half the miles unlogged and your estimated payments are sized for a profit you did not make.
A two-minute check before each payment
- Classify what is waiting. Unclassified drives are not in the total.
- Read the year-to-date figure. In Mile, Reports → Year shows business miles and the deduction so far, valued at the rate in force on each drive's date.
- Hand that number to whoever figures your payment — your preparer, your spreadsheet, or the worksheet in IRS Form 1040-ES.
- Pay online. IRS Direct Pay, EFTPS and your IRS online account all accept estimated payments and give you a confirmation.
Missed the start of the year?
If you only started tracking partway through the year, the earlier miles still count — they just need a record. Import a CSV from the mileage app you used before (MileIQ, Everlance and Driversnote exports are recognized), or rebuild past drives from Google Maps Timeline, and the year-to-date figure catches up. For anything else, here is how to reconstruct trips honestly.
This article is general information, not tax advice. Ask your tax professional what you should pay.
This article is general information about US federal tax rules, not tax advice for your situation. Rates and rules change — check IRS.gov or ask a tax professional before you file.