Uber Driver Taxes in Pennsylvania - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Uber Driver income taxable in Pennsylvania?

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

Federal Taxes: You'll report your Uber income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct business expenses, reducing your taxable income. The net profit (income minus expenses) from Schedule C is then reported on your Form 1040.

Pennsylvania State Taxes: Pennsylvania has a flat income tax rate of 3.07% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be included in your Pennsylvania income tax return (Form PA-1040). Because Pennsylvania has a flat tax, the amount you owe is directly proportional to your taxable income – the higher your income, the higher your tax liability.

Top Tax Write-offs for Uber Drivers

As an Uber driver, you can significantly reduce your tax burden by taking advantage of available deductions. Here are some key write-offs:

• 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 cannot use the standard mileage rate if you've previously claimed depreciation on your vehicle.
• Vehicle Expenses (Alternative to Mileage): Instead of the standard mileage rate, you can deduct the actual expenses of operating your vehicle, such as gas, oil changes, repairs, insurance, registration fees, and depreciation. You must keep detailed records of all these expenses. Generally, the mileage method yields a larger deduction, but compare both methods to see which benefits you most.
• Uber Fees & Commissions: The fees Uber charges for using their platform are deductible. This is typically shown on your annual Uber earnings summary (Form 1099-K).
• 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 demonstrating business use.

The 15.3% Self-Employment Tax Surprise

Being self-employed means you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax).

The good news is you only pay self-employment tax on 92.35% of your net earnings from Schedule C. Schedule SE is then filed with your Form 1040. Don't be alarmed when you see this amount – it's a normal part of being self-employed!

Closing Tip for Pennsylvania Residents

Tax time can be complex, especially for self-employed individuals. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or a spreadsheet to track your mileage, expenses, and earnings. If you're unsure about any aspect of your tax filing, consulting with a qualified tax professional (like myself!) can help ensure you're maximizing your deductions and complying with all applicable laws. Good luck, and safe driving!