Question 1

Do Uber drivers have to pay self-employment tax?

Accepted Answer

Yes. As an independent contractor, Uber drivers pay self-employment (SE) tax of 15.3% on net earnings — 12.4% for Social Security and 2.9% for Medicare. This is in addition to federal and state income taxes.

Question 2

Should I use the standard mileage rate or actual expenses?

Accepted Answer

For most Uber drivers, the standard mileage rate (67 cents/mile in 2026) is simpler and often results in a larger deduction. Track every mile you drive for business — including miles driving to pick up passengers. If you have a newer or expensive vehicle, compare both methods to see which saves more.

Question 3

What happens if I don't pay quarterly estimated taxes?

Accepted Answer

If you owe more than $1,000 in taxes for the year and haven't paid quarterly estimates, the IRS may charge an underpayment penalty. Quarterly payments are due in April, June, September, and January. Use this calculator to estimate your quarterly amount.

Question 4

Do I need to report income under $600 from Uber?

Accepted Answer

Yes. Even if Uber doesn't send you a 1099 (they're required to for $600+), you must report all income on your tax return. Keep your own records of every trip and payment received.

Uber Driver Tax Calculator

Common Deductions for Uber Drivers

Frequently Asked Questions

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Calculation Basis & Sources