Uber Driver Taxes in Maine - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Maine?

Yes, income earned as an Uber driver is absolutely taxable, both at the federal and Maine state levels. As an independent contractor, you are considered self-employed by the IRS and the Maine Revenue Services. 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 is 67 cents per mile for business use of your vehicle. You can choose to deduct either actual expenses (gas, oil, repairs, etc.) or the standard mileage rate – but not both. Generally, the standard mileage rate is simpler and often results in a larger deduction.

Maine Specific Rules: Maine has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber income, after deducting business expenses on Schedule C, will be added to your other income (if any) and taxed according to the Maine income tax brackets for the 2024 tax year (filing in 2025). You'll file this information on Maine Form 1040ME. Maine also allows for itemized deductions, which may further reduce your taxable income, but these are separate from your Schedule C deductions.

Top Tax Write-offs for Uber Drivers

• Mileage: As mentioned, the 67 cents per mile (for 2024) is a significant deduction. Keep a detailed log of all business miles driven (from when you log into the Uber app with the intention of accepting a ride, to when you log out). Apps like Stride Tax or Everlance can help with this.
• Vehicle Expenses (Alternative to Mileage): If you choose to deduct actual expenses instead of mileage, you can deduct costs like gas, oil changes, repairs, tires, insurance, vehicle registration fees, and depreciation. Keep all receipts!
• Uber App Fees & Subscriptions: Any fees paid directly to Uber, as well as the cost of any subscription services used specifically for driving (e.g., phone data plans used primarily for Uber, dash cams, or tax preparation software), are deductible.
• Phone Expenses: You can deduct the portion of your cell phone bill that is directly related to your Uber driving. This is typically calculated based on the percentage of time you use your phone for Uber-related activities.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3%. You'll report this on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on your net profit (after deducting business expenses). There's also a deduction for one-half of your self-employment tax on Form 1040, which reduces your adjusted gross income (AGI).

Importantly, self-employment tax only applies to earnings over $400. If your net Uber earnings are less than $400, you won't owe self-employment tax, but you'll still need to file Schedule C.

Closing Tip for Maine Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software or a tax professional specializing in self-employment income. Maine Revenue Services offers resources on their website (maine.gov/revenue) and you can find helpful information on the IRS website (irs.gov) as well. Proactive tax planning can save you time, money, and potential headaches when filing your 2024 taxes in 2025.