Lyft Driver Taxes in New Hampshire - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Lyft Driver income taxable in New Hampshire?

As a Lyft driver, your earnings are generally taxable at the federal level. You’ll report your income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return. This form calculates your net profit (income minus expenses), which is then added to your other income to determine your adjusted gross income (AGI).

However, New Hampshire is unique! New Hampshire does not have a general income tax on wages or salaries. This means while you must report your Lyft income on your federal return, you will likely not owe New Hampshire state income tax on those earnings. New Hampshire taxes only interest and dividends. It's crucial to understand this distinction – you're still responsible for federal taxes, even though New Hampshire doesn't tax your driving income.

Top Tax Write-offs for Lyft Drivers

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is approximately 67 cents per business mile driven. Keep a detailed log (date, starting/ending location, business purpose) to substantiate your mileage claim.
• Phone Expenses: If you use your phone for Lyft-related activities (navigation, driver app, communication with passengers), you can deduct the percentage of your phone bill attributable to business use.
• Lyft-Specific Software & Fees: Expenses for apps or services directly related to driving for Lyft (e.g., tax preparation software specifically for gig workers, driver support subscriptions) are deductible.
• Vehicle Expenses (Actual Expenses vs. Mileage): While the standard mileage rate is simpler, you can choose to deduct actual vehicle expenses (gas, oil changes, repairs, insurance, registration, depreciation). This requires more detailed record-keeping and may only be beneficial if your actual expenses exceed the standard mileage rate deduction.

The 15.3% Self-Employment Tax Surprise

Because you're an independent contractor, not an employee, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is called self-employment tax. You'll calculate this on Schedule SE (Self-Employment Tax). The combined rate is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You only pay self-employment tax on profits over $400. The good news is you can deduct one-half of your self-employment tax from your gross income.

Closing Tip for New Hampshire Residents

While New Hampshire’s lack of income tax is a benefit, don’t overlook your federal tax obligations as a Lyft driver. Meticulous record-keeping – especially mileage logs and expense receipts – is essential to maximize your deductions and minimize your tax liability. Consider using accounting software designed for independent contractors or consulting with a tax professional to ensure you’re compliant and taking advantage of all available tax benefits.