How much tax do Uber drivers pay?

You pay 15.3% self-employment tax on 92.35% of your net profit (fares minus expenses), plus federal income tax at your bracket. After deducting mileage and fees, many drivers set aside about 25–30% of net earnings for taxes.

Can Uber drivers write off mileage?

Yes, and it's usually the biggest deduction. For 2025 you can deduct 70¢ per business mile using the standard mileage method, or use actual vehicle costs. Track all miles from when you go online to when you go offline, not just trips with passengers.

Do I have to pay taxes if I drive Uber part time?

Yes. If your net earnings from driving are $400 or more, you owe self-employment tax and must file a Schedule C, even as a side gig. You must report the income even if you don't receive a 1099-K or 1099-NEC.

What's the difference between standard mileage and actual expenses for Uber?

Standard mileage (70¢/mile in 2025) is simpler and often larger for high-mileage drivers. Actual expenses deduct the business-use share of gas, insurance, repairs, and depreciation. You should compare both, but if you want to use standard mileage, you must choose it the first year you use the car for business.

Self-Employment Tax Calculator for Uber & Lyft Drivers (2025)

How much tax does a self-employed uber & lyft driver pay? A uber & lyft driver earning $45,000 with about $15,000 in business expenses owes roughly $5,456 in total federal tax for 2025 — a 15.3% self-employment tax plus federal income tax — or about $1,364 per quarter. A common rule of thumb is to set aside 25–30% of net income for taxes. Use the calculator below for your own numbers and state.

As an Uber or Lyft driver, you're an independent contractor — no taxes are withheld from your earnings. This calculator estimates your self-employment tax, federal income tax, and quarterly estimated payments, factoring in the mileage deduction that most drivers overlook.

Annual gross income (before expenses)

Total business expenses (incl. deductions below)

State

This tool provides estimates for educational purposes only and is not tax advice. Tax rules change; figures are based on 2025 federal rules. Consult a tax professional for your specific situation.

Deductions Uber & Lyft Drivers often miss

Most full-time rideshare drivers gross $30,000–$60,000/year before expenses. Your biggest deduction is almost always business mileage.

Standard mileage deduction: 70¢ per business mile (2025 IRS rate). Every mile online, driving to pickups, and between rides counts. This is usually the single largest deduction — track it religiously.
Phone & data plan: The business-use percentage of your cell phone bill and any mounts, chargers, or data plans used for driving.
Car washes & cleaning: Keeping your car passenger-ready is a deductible business expense.
Snacks & water for passengers: Amenities you provide to earn better ratings are deductible.
Platform & service fees: Uber/Lyft commissions, booking fees, and airport fees are already excluded from your net — but confirm against your 1099-K.

Common tax mistakes for uber & lyft drivers

Not tracking miles from the moment you go online (not just during a ride).
Forgetting they owe 15.3% self-employment tax on top of income tax.
Missing quarterly deadlines and getting hit with underpayment penalties.
Using gross fares from the 1099-K instead of net earnings.

How self-employment tax works

As a self-employed uber & lyft driver, you pay a 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, plus federal and state income tax. A common rule of thumb is to set aside 25–30% of your net income for taxes.

Quarterly estimated tax deadlines (2025)

If you expect to owe $1,000 or more, the IRS requires quarterly estimated payments. For 2025 income the deadlines are: April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. Missing them can trigger underpayment penalties. The calculator above estimates your quarterly amount.

Frequently asked questions

How much tax do Uber drivers pay?: You pay 15.3% self-employment tax on 92.35% of your net profit (fares minus expenses), plus federal income tax at your bracket. After deducting mileage and fees, many drivers set aside about 25–30% of net earnings for taxes.
Can Uber drivers write off mileage?: Yes, and it's usually the biggest deduction. For 2025 you can deduct 70¢ per business mile using the standard mileage method, or use actual vehicle costs. Track all miles from when you go online to when you go offline, not just trips with passengers.
Do I have to pay taxes if I drive Uber part time?: Yes. If your net earnings from driving are $400 or more, you owe self-employment tax and must file a Schedule C, even as a side gig. You must report the income even if you don't receive a 1099-K or 1099-NEC.
What's the difference between standard mileage and actual expenses for Uber?: Standard mileage (70¢/mile in 2025) is simpler and often larger for high-mileage drivers. Actual expenses deduct the business-use share of gas, insurance, repairs, and depreciation. You should compare both, but if you want to use standard mileage, you must choose it the first year you use the car for business.