Amazon Flex Taxes in California - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in California

Navigating the Golden State’s roads as an Amazon Flex driver offers flexibility, but also introduces unique tax considerations. As an independent contractor, understanding your tax obligations is crucial to avoid surprises during filing season.

The IRS requires all Amazon Flex drivers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, as these are not automatically withheld from your Flex earnings.

How California Handles Gig Worker Taxes

As a resident of California, filing a state income tax return is mandatory, even if your federal tax liability is zero. California employs a graduated income tax system, meaning the tax rate increases as your income rises. This means the more you earn through Amazon Flex, the higher the percentage of tax you'll pay. California’s Franchise Tax Board (FTB) is the primary agency responsible for administering state taxes. The main form for self-employed individuals to report income and calculate tax liability is Form 540, California Resident Income Tax Return. You will likely also need Schedule CA (540), California Adjustments – Residents, to report any state-specific adjustments to your federal adjusted gross income.

California also has a minimum franchise tax for LLCs and corporations, but this generally doesn't apply to sole proprietors using their Social Security number for Flex earnings. However, if you operate as an LLC, be sure to understand those requirements. Keep meticulous records of all income and expenses, as California is known for its thorough tax enforcement. The FTB offers numerous resources online, including guides specifically for self-employed individuals, to help ensure accurate filing. Due to California’s relatively high gas prices, it’s particularly important to carefully evaluate whether the standard mileage rate or the actual expense method will yield a larger deduction.

You can find more information and resources on the California Franchise Tax Board website: https://www.ftb.ca.gov/

Top Tax Deductions for California Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given California’s consistently high gas prices, carefully consider if this rate adequately covers your vehicle expenses.
• Tolls & Parking: California drivers frequently encounter tolls, particularly around major metropolitan areas like Los Angeles and the Bay Area, utilizing systems like Fastrak. Parking fees incurred while actively delivering packages are also deductible.
• Phone & Data Plan: The portion of your monthly phone and data bill directly attributable to your Amazon Flex work is deductible. Keep records demonstrating business use.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, insulated hot bags for food deliveries, and even dash cams for security can be deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance) in the same tax year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon and other delivery platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated quarterly tax payments to the IRS and the California FTB to avoid penalties.