Uber Driver Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Louisiana?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Louisiana state levels. As an independent contractor, you are considered self-employed by the IRS and the Louisiana Department of Revenue. This means you're responsible for reporting all earnings and paying the associated taxes.

Federal Requirements: You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This form calculates your net profit (income minus expenses). The official 2024 standard mileage rate for business use is 67 cents per mile. You can choose to deduct either actual expenses or the standard mileage rate – generally, the standard mileage rate is simpler and often results in a larger deduction, especially if you have significant vehicle expenses.

Louisiana Specific Rules: Louisiana has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (like wages from a traditional job, if any) to determine your total taxable income for Louisiana. You'll then use the Louisiana tax brackets to calculate your state income tax liability. Louisiana also has its own Schedule C equivalent for state income tax purposes, which you'll need to complete.

Top Tax Write-offs for Uber Drivers

Maximizing your deductions is key to minimizing your tax bill. Here are some common deductions for Louisiana Uber drivers:

• Mileage: As mentioned, you can deduct 67 cents per mile driven for business purposes (delivering passengers). Keep a detailed mileage log! Apps like Stride Tax or Everlance can help.
• Vehicle Expenses (Alternative to Mileage): If you choose not to use the standard mileage rate, you can deduct actual vehicle expenses like gas, oil changes, repairs, insurance, registration fees, and depreciation. You must keep detailed records of these expenses.
• Uber-Related Fees & Commissions: The fees Uber charges you (the percentage they take from each fare) are deductible.
• Phone & Data Expenses: You can deduct the portion of your cell phone bill and data plan that is used for your Uber driving business. Keep records showing business use.

The 15.3% Self-Employment Tax Surprise

Many drivers are surprised by self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions – a total of 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on 92.35% of your net earnings from Schedule C. Also, you only pay self-employment tax on earnings over $400. Half of your self-employment tax is deductible from your gross income on Form 1040.

Closing Tip for Louisiana Residents

Tax laws can be complex, and this is a general guide. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for independent contractors. For personalized advice tailored to your specific situation, consulting with a qualified tax professional in Louisiana is always a wise investment. Don't hesitate to seek professional help to ensure you're taking all the deductions you're entitled to and complying with all applicable tax laws.