Uber Driver Taxes in Nevada - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Nevada?

Yes, your income as an Uber driver is taxable, but the situation in Nevada is simpler than in many other states. The federal government considers you self-employed, meaning you operate as a business. 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), which is then added to your overall income for the year.

Nevada-Specific Rules: Nevada is one of the few states with no state income tax. This means you won't file a state income tax return or pay state income tax on your Uber earnings. However, your federal tax obligations still apply.

Top Tax Write-offs for Uber Drivers

As a self-employed Uber driver, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:

• Mileage: This is often the largest deduction. For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Uber, including the date, starting and ending locations, and purpose (passenger pick-up/drop-off, waiting for rides, etc.). You can also deduct parking fees and tolls.
• Vehicle Expenses (Actual Expenses Method): Instead of mileage, you can deduct the actual costs of operating your vehicle, such as gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. You'll need meticulous records if you choose this method. Generally, the mileage method yields a larger deduction.
• Uber-Related Fees & Commissions: The fees Uber charges you for using their platform are deductible. This includes the percentage Uber takes from each fare.
• Smartphone & Data Plan: If you use your smartphone primarily for Uber driving, you can deduct the portion of your phone bill and data plan that relates to business use. Keep records showing how much of the time your phone is used for Uber.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is known as self-employment tax. It totals 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings. However, you only pay self-employment tax on earnings over $400. You'll calculate this on Schedule SE (Self-Employment Tax), which is also filed with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income.

Closing Tip for Nevada Residents

While Nevada's lack of state income tax is a benefit, don't overlook your federal tax obligations as an Uber driver. Maintaining accurate records of your income and expenses throughout the year is crucial for maximizing your deductions and minimizing your tax liability. Consider using accounting software or working with a qualified tax professional to ensure you're compliant and taking advantage of all available tax benefits. Filing an accurate return is key, even in a tax-friendly state like Nevada!