What expenses can Uber drivers deduct besides mileage?

Beyond mileage, Uber drivers can deduct: phone and data plan (business-use percentage), car cleaning and detailing, passenger supplies (water, phone chargers, mints), phone mounts and accessories, roadside assistance plans, and parking or toll fees incurred during rides. Keep receipts and track the business-use percentage of shared expenses like your phone plan.

Uber Driver Tax Calculator

Estimate your self-employment tax, mileage deductions, and quarterly payments on your Uber 1099 income for 2025 and 2026.

$45,000

Avg. annual Uber driver earnings (full-time)

$0.70

IRS standard mileage rate per mile (2025)

15.3%

Self-employment tax rate (SS + Medicare)

$176,100

Social Security wage base (2025)

Important Stuff Upfront

Uber income is self-employment income, taxed at 15.3% (Social Security + Medicare) on top of regular income tax.
Uber issues a 1099-K for ride payments and may issue a 1099-NEC for bonuses. Both report gross amounts before Uber's fees.
The IRS standard mileage rate (70 cents/mile for 2025) is usually the biggest deduction for Uber drivers. Track every mile.
If you expect to owe $1,000+ in taxes, make quarterly estimated payments to avoid an IRS underpayment penalty.

How Uber Drivers Are Taxed

When you drive for Uber, you are classified as an independent contractor, not an employee. That means Uber does not withhold federal income tax, Social Security, or Medicare from your earnings. Instead, you are responsible for paying self-employment tax (15.3% on the first $176,100 of net earnings in 2025) plus federal income tax on your net profit.

Uber reports your gross ride payments on a 1099-K if you exceed the IRS reporting threshold. You may also receive a 1099-NEC for non-ride income such as referral bonuses, quest promotions, or Uber Pro rewards. The amounts on these forms reflect gross earnings before Uber's service fee (typically 25%), so your actual taxable income is lower once you subtract that fee and your other deductions.

Worked Example: SE Tax on $45,000 Uber Income

Gross Uber income reported on 1099-K: $45,000
Subtract business expenses (mileage at 15,000 miles x $0.70 = $10,500, plus $800 in other deductions): $45,000 - $11,300 = $33,700 net profit
Calculate SE tax base: $33,700 x 0.9235 = $31,122
SE tax: $31,122 x 15.3% = $4,762
SE tax deduction (50% of SE tax): $4,762 / 2 = $2,381 (reduces your income tax)

On $45,000 in gross Uber income with typical deductions, you would owe approximately $4,762 in self-employment tax plus federal income tax on the remaining profit. Your quarterly estimated payment would be roughly $1,190.

Mileage: Your Biggest Deduction

For most Uber drivers, mileage is the single largest tax deduction. The IRS lets you choose between two methods: the standard mileage rate (70 cents per mile for 2025) or tracking actual vehicle expenses (gas, insurance, maintenance, depreciation). Most drivers use the standard rate because it is simpler and often more generous.

You can deduct miles driven while the Uber app is on and you are available for rides, including deadhead miles between passenger drop-off and the next pickup. You cannot deduct your commute from home to the area where you start driving, or the drive home at the end of the night. Use an app like Everlance, Stride, or MileIQ to track mileage automatically.

Other Deductible Expenses for Uber Drivers

Beyond mileage, Uber drivers can deduct a range of business expenses on Schedule C:

Phone and data plan (business-use percentage only)
Car washes and detailing
Passenger supplies: water bottles, phone chargers, mints, aux cables
Phone mounts and car accessories
Roadside assistance or AAA membership
Tolls and parking fees incurred during rides

Keep receipts for everything and separate personal from business use. For shared expenses like your phone bill, estimate the percentage used for Uber and deduct only that portion.

Quarterly Estimated Taxes for Uber Drivers

Because Uber does not withhold taxes, you are expected to make quarterly estimated tax payments to the IRS if you will owe $1,000 or more for the year. The four due dates are April 15, June 15, September 15, and January 15. You can pay through IRS Direct Pay or the EFTPS system.

Use the calculator above to estimate your total tax for the year, then divide by four for a simple quarterly payment amount. If your income varies significantly by season, you can use the annualized installment method (Form 2210, Schedule AI) to adjust payments quarter by quarter.

Tip: Set Aside 25-30% of Every Payment

A common rule of thumb for Uber drivers is to set aside 25 to 30% of each Uber payout in a separate savings account earmarked for taxes. This covers both self-employment tax and federal income tax for most drivers in the 10-22% income tax brackets. If your income is higher, consider setting aside more. A CPA or enrolled agent who works with gig workers can help you dial in the right percentage for your situation.

W-2 Wages and the Social Security Wage Base

If you drive for Uber on the side while holding a W-2 job, your W-2 wages count toward the Social Security wage base ($176,100 in 2025). Once your combined W-2 wages and SE earnings hit the cap, the 12.4% Social Security portion of SE tax stops, and you only owe the 2.9% Medicare tax on additional earnings. The calculator above accounts for this interaction automatically. Enter both your W-2 income and Uber income for an accurate estimate.

Jordan Keller

Jordan writes about self-employment taxes and freelance finance. All content is researched against current IRS publications. Learn more.

Uber Driver Tax FAQs

Uber issues a 1099-K if your gross ride payments exceed the IRS reporting threshold ($5,000 in 2024). You may also receive a 1099-NEC for non-ride income like referral bonuses or promotions. Both forms report gross amounts before Uber's service fee, so your actual taxable income is lower after deductions.

Yes. Uber drivers can deduct business mileage using the IRS standard mileage rate (70 cents per mile for 2025). This covers miles driven while the app is on and you are available for rides, including miles between pickups. You cannot deduct commuting miles from home to your first pickup or from your last drop-off to home.

If you expect to owe $1,000 or more in federal taxes for the year, the IRS requires quarterly estimated payments. Due dates are April 15, June 15, September 15, and January 15. Missing these deadlines can trigger an underpayment penalty. Use the calculator above to estimate your quarterly amount.

Beyond mileage, deductible expenses include: phone and data plan (business-use percentage), car cleaning and detailing, passenger supplies (water, chargers, mints), phone mounts and car accessories, roadside assistance plans, and parking or toll fees incurred during rides.

Your W-2 wages count toward the Social Security wage base ($176,100 in 2025). Once combined wages and SE income reach the cap, you stop paying the 12.4% Social Security portion and only owe 2.9% Medicare tax on additional SE earnings. The calculator handles this automatically when you enter both income types.

The 1099-K reports your gross ride payments from passengers processed through the Uber platform. The 1099-NEC reports non-ride income such as referral bonuses, quest promotions, and Uber Pro rewards. Both report gross amounts before Uber takes its service fee, so your taxable income is lower once you account for that fee and your deductions.

Disclaimer

This calculator and guide provide estimates for educational purposes only. Tax laws and rates may change. This content does not account for all possible deductions, credits, state taxes, or individual circumstances. For accurate tax advice, consult a qualified tax professional. For more information, refer to the IRS Self-Employed Tax Center.