Fact Checked by: David Chen, CFA • Financial Tax Specialist
Estimate your self-employment tax obligations with precision. This uber tax calculator helps rideshare drivers calculate net income after mileage deductions and business expenses to determine quarterly or annual tax liabilities.
Uber Tax Calculator
Net Taxable Income: $0.00
Uber Tax Calculator Formula
$$T = (G – (M \times 0.67) – E) \times R$$
Where: G = Gross Earnings, M = Miles, E = Other Expenses, R = Tax Rate, T = Estimated Tax.
Formula Source: IRS Standard Mileage Rates | TurboTax Gig Economy Guide
Variables:
- Gross Earnings: The total amount paid to you by Uber before any service fees or deductions.
- Business Miles: Total mileage logged while waiting for rides, driving to pick up, and during trips.
- Other Expenses: Deductible costs like mobile phone plans, car cleaning, and water for passengers.
- Tax Rate: Combined percentage of Federal, State, and Self-Employment (Social Security/Medicare) taxes.
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What is Uber Tax Calculator?
An uber tax calculator is a specialized financial tool designed for independent contractors working in the rideshare industry. Unlike W-2 employees, Uber drivers are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, often referred to as self-employment tax.
This calculator accounts for the largest tax break available to drivers: the standard mileage deduction. By inputting your earnings and mileage, you can accurately forecast how much money you should set aside each month to avoid surprises during the tax season.
How to Calculate Uber Tax (Example)
- Identify Gross Revenue: Suppose you earned $1,000 this week.
- Calculate Mileage Deduction: If you drove 500 miles, use the IRS rate ($0.67/mile). 500 * 0.67 = $335 deduction.
- Subtract Other Expenses: Subtract your $50 phone bill. $1,000 – $335 – $50 = $615 Net Income.
- Apply Tax Rate: If your rate is 25%, calculate $615 * 0.25 = $153.75 Estimated Tax.
Frequently Asked Questions (FAQ)
Are Uber drivers considered self-employed? Yes, the IRS classifies Uber drivers as independent contractors (1099 workers), meaning you must manage your own tax withholdings.
Can I deduct both gas and mileage? Generally, no. You must choose between the standard mileage rate or actual expenses (gas, repairs, depreciation). Most drivers find the mileage rate more beneficial.
What is the mileage rate for 2024? The IRS standard mileage rate for 2024 is 67 cents per mile driven for business use.
When are Uber taxes due? If you expect to owe more than $1,000, you are typically required to make quarterly estimated tax payments in April, June, September, and January.