Amazon Flex Taxes in Los Angeles, California - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Los Angeles, California

Navigating the bustling streets of Los Angeles as an Amazon Flex driver offers flexibility, but also introduces unique tax considerations. Delivering packages from Hollywood to Santa Monica means diligent record-keeping is crucial for maximizing deductions and ensuring compliance with both federal and California tax laws.

As an independent contractor for Amazon Flex, the IRS considers earnings from deliveries as self-employment income. This necessitates reporting income and expenses on Schedule C (Profit or Loss From Business) when filing your federal income tax return. Furthermore, because no taxes are withheld from your Flex earnings, you are responsible for paying self-employment taxes, which cover both Social Security and Medicare.

How California Handles Gig Worker Taxes

California, as a state with a progressive income tax system, requires residents to file a state income tax return regardless of income level. As an Amazon Flex driver earning income in California, you will need to report your self-employment income on Form 540, California Resident Income Tax Return. California’s tax brackets range from 1% to 13.3%, meaning the amount of tax owed increases as income rises. It’s important to accurately calculate your net profit from your Amazon Flex business (total earnings minus deductible expenses) as this figure will be used to determine your California income tax liability. California also has a minimum franchise tax for self-employed individuals, even if no income tax is due. The Franchise Tax Board (FTB) offers resources specifically for self-employed individuals, and it's recommended to consult their website for the most up-to-date information and forms: California Franchise Tax Board. Working in a large metropolitan area like Los Angeles can present unique challenges, such as increased parking costs and traffic congestion, both of which can impact deductible expenses. Be sure to keep detailed records of all business-related expenses incurred while working within the city limits.

Top Tax Deductions for Los Angeles, California Drivers

• Standard Mileage: The most popular deduction for Flex drivers. The 2025 rate is 70 cents per mile. Given the consistently higher gas prices in Los Angeles and surrounding areas, carefully consider if the standard mileage rate or the actual expense method will yield a greater tax benefit.
• Tolls & Parking: Los Angeles drivers frequently encounter tolls on certain routes and often incur parking fees during deliveries. Keep receipts for all tolls paid and parking expenses, as these are deductible business expenses. Fastrak transponders are commonly used for toll roads in Southern California.
• Phone & Data Plan: If you use your personal phone for business purposes (navigation, communicating with Amazon, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags for food deliveries are all deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. This tax is applied to your net earnings – your profit after deducting business expenses – exceeding $400.