Uber Driver Taxes in New York - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in New York?

Yes, absolutely. Income earned as an Uber driver is taxable at both the federal and New York State levels. As an independent contractor, you are considered self-employed by the IRS and New York State. This means you're responsible for reporting your earnings and paying all applicable 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 net profit is then added to your other income when calculating your Adjusted Gross Income (AGI).

New York State Requirements: New York has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Uber net profit, as calculated on your federal Schedule C, will be included in your New York State income tax return (Form IT-1040). You'll use the New York State tax brackets to determine your state income tax liability. New York also has its own form for self-employment income, typically flowing from your federal Schedule SE (explained below).

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 business mile driven. Keep a detailed log of all miles driven for Uber, including the date, starting and ending locations, and business purpose. You can't use actual expenses (gas, oil, repairs) if you take the standard mileage rate.
• Vehicle Expenses (Alternative to Mileage): Instead of mileage, you can deduct the actual expenses of operating your vehicle, such as gas, oil, repairs, maintenance, insurance, registration fees, and depreciation. You must choose one method (mileage or actual expenses) and be consistent. Generally, mileage is simpler and often results in a larger deduction.
• Uber Fees & Commissions: The fees Uber charges you for using their platform are deductible. This is typically shown on your 1099-K form.
• 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 to support the business percentage.

The 15.3% Self-Employment Tax Surprise

Many Uber drivers are surprised to learn about 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 tax is calculated on your net earnings from self-employment (your Schedule C profit) minus one-half of your self-employment tax. There's an income limit for Social Security tax; for 2024, it's $168,600. All net earnings are subject to Medicare tax. The good news is you can deduct one-half of your self-employment tax from your AGI on Form 1040.

Closing Tip for New York Residents

Navigating taxes as an Uber driver can be complex. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional, especially given New York's graduated income tax system. Proper planning and accurate record-keeping will help you minimize your tax liability and avoid potential issues with the IRS or New York State Department of Taxation and Finance. Don't hesitate to seek professional guidance – it's an investment that can pay off significantly!