Uber Driver Taxes in Oregon - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Oregon?

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

Federal Requirements (Schedule C): The IRS requires you to report your Uber income and expenses on Schedule C, "Profit or Loss From Business (Sole Proprietorship)." This form calculates your net profit (income minus expenses), which is then reported on your Form 1040. You'll need to keep detailed records of all income received from Uber (typically available through the Uber Driver app) and all business-related expenses.

Oregon Specific Rules (Graduated Income Tax): Oregon 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 applicable) to determine your total taxable income for Oregon. The Oregon Department of Revenue publishes tax brackets annually; for 2024 income (filed in 2025), you'll need to refer to the official Oregon tax forms and instructions to determine your applicable tax rate. You'll file this information on Oregon Form OR-40.

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. You must keep a detailed mileage log documenting the date, purpose (Uber trip), and miles driven. You can not claim mileage if you also deduct actual expenses (like gas and maintenance - see below).
• Vehicle Expenses (Actual Costs): Instead of the standard mileage rate, you can deduct the actual costs of operating your vehicle, including gas, oil changes, repairs, maintenance, insurance, registration fees, and depreciation. You'll need to keep receipts for all these expenses. You must choose either mileage or actual expenses – you can’t claim both.
• Uber App Fees & Commissions: The fees Uber charges for using their platform are deductible. Uber provides a 1099-K form detailing these amounts.
• Phone & Data Expenses: If you use your phone for Uber-related activities (navigation, accepting rides, communication), you can deduct the portion of your phone bill attributable to business use. Keep records of how much time you spend using your phone for Uber.

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, totaling 15.3% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE, "Self-Employment Tax." However, you only pay self-employment tax on 92.35% of your net earnings from Schedule C. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Oregon Residents

Tax laws can be complex, and this guide provides general information. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for self-employed individuals to simplify tracking. Finally, don't hesitate to consult with a qualified tax professional (like myself!) in Oregon to ensure you're taking advantage of all available deductions and complying with all applicable tax laws. Proper planning can save you significant money and avoid potential issues with the IRS and the Oregon Department of Revenue.