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Uber and Lyft Driver Taxes: A 2026 Guide for Rideshare Drivers
The short answer: rideshare drivers are self-employed. You owe 15.3% self-employment tax on your profit plus income tax, paid in quarterly estimates. Your biggest savings are the 72.5¢ mileage deduction and the tips deduction, which covers rideshare drivers. Set aside about 15–25% of your earnings.
Uber/Lyft tax calculator
How rideshare taxes work
Uber and Lyft treat drivers as independent contractors, so neither app withholds taxes. You report your rideshare earnings and expenses on Schedule C and pay tax on the profit.
Your Uber and Lyft tax forms
Rideshare apps may send a 1099-K for ride payments and a 1099-NEC for other earnings such as some bonuses or referrals, depending on the app and your totals. Both apps also provide a yearly tax summary in the driver app or dashboard. Use the summary to find app fees and other amounts that affect your totals. Your state may require forms at lower amounts than the federal rules (see 1099-K for gig workers).
What rideshare drivers can deduct
- Business miles at 72.5¢, including driving to pickups and between rides, not just miles with a passenger.
- Tips from riders, up to $25,000 off federal income tax. "Taxi and rideshare drivers" are on the IRS's final list of tipped occupations.
- Rider amenities like water, chargers and phone mounts, plus the business share of your phone.
- Parking and tolls that you paid and weren't reimbursed for.
Drivers with newer cars should also compare standard mileage vs. actual expenses in the first year and check the car loan interest deduction.
Quarterly payments
If you expect to owe $1,000 or more for the year, pay estimated taxes four times a year:
| Income earned | Estimated payment due |
|---|---|
| Jan 1 – Mar 31, 2026 | April 15, 2026 |
| Apr 1 – May 31, 2026 | June 15, 2026 |
| Jun 1 – Aug 31, 2026 | September 15, 2026 |
| Sep 1 – Dec 31, 2026 | January 15, 2027 |
For the full picture, including filing steps and common mistakes, see the complete guide to gig worker taxes.
FAQ
Do Uber drivers pay self-employment tax?
Yes. Rideshare drivers pay 15.3% self-employment tax on 92.35% of their net profit, plus income tax.
Can Uber and Lyft drivers deduct tips?
Yes, qualified tips can be deducted from federal income tax, up to $25,000. Rideshare drivers are on the IRS list of qualifying occupations. Tips still count for self-employment tax.
What miles can Uber drivers deduct?
Miles driven for business while working, including to pickups and between rides. Keep a log with dates, miles and purpose.
Should rideshare drivers pay quarterly taxes?
Generally yes, if you expect to owe $1,000 or more for the year.
Sources: IRS Gig Economy Tax Center · IRS self-employment tax · IRS 2026 mileage rate · Federal Register: qualified tips final rules · CPA Practice Advisor: 1099 thresholds · Taxpayer Advocate Service 2026 tax dates. General information for planning, not tax, legal or financial advice. Rules have exceptions; check with a tax professional for your situation.
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