How Much Should an Uber Driver Save for Taxes? How to Calculate It
A step-by-step way to calculate your Uber taxes, three worked 2026 examples and simple saving rules that keep you from being surprised in April.
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Key takeaways
- A safe rule of thumb is to set aside 25% to 30% of your net profit (earnings minus fees and expenses), plus your state's income tax.
- Drivers whose only income is Uber often owe less: around 15% to 18% of profit in our 2026 examples, mostly self-employment tax.
- Drivers with a full-time job usually owe more, about 24% of their driving profit or higher.
- To calculate your taxes: profit → self-employment tax → taxable income → income tax → add both.
Uber pays you every week without withholding anything, so all the tax arrives in one bill unless you plan for it. The good news: your tax on Uber income is predictable once you understand the steps. Below is the calculation, three realistic examples and practical saving rules.
Please note
Estimates based on US federal rules for 2026 as of October 2026; not tax advice. State and local taxes come on top, and credits, dependents or a spouse's income can change the result significantly.
How to calculate Uber taxes in five steps
- Find your net profit. Start with your earnings after Uber's fees (your tax summary shows them), then subtract business expenses: mileage (72.5¢ per mile January to June 2026, 76¢ from July 1), phone, tolls, parking and supplies.
- Calculate self-employment tax: net profit × 92.35% × 15.3%.
- Find your taxable income: total income (including any W-2 wages) minus half of the SE tax, minus the standard deduction ($16,100 single, $32,200 married filing jointly in 2026), minus the tips deduction and the QBI deduction (up to 20% of profit after the deductible half of SE tax, limited to 20% of taxable income).
- Apply the tax brackets to your taxable income.
- Add SE tax and income tax. If you have a job, compare with what is already withheld from your paychecks.
2026 federal tax brackets (single)
| Taxable income | Rate |
|---|---|
| Up to $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $640,600 | 35% |
| Over $640,600 | 37% |
For married couples filing jointly, the brackets are exactly twice as wide up to the 32% bracket (for example, 12% applies up to $100,800 of taxable income).
Three worked examples for 2026
| A: full-time, Uber only | B: side gig with a job | C: high-mileage, Uber only | |
|---|---|---|---|
| W-2 salary | – | $60,000 | – |
| Uber earnings after fees | $40,000 | – | $65,000 |
| Business miles (split evenly) | 18,000 | – | 30,000 |
| Mileage deduction | $13,365 | – | $22,275 |
| Other expenses | $1,030 | – | $1,500 |
| Net profit | $25,605 | $10,000 | $41,225 |
| Tips deducted | $3,000 | $0 | $5,000 |
| Self-employment tax | $3,618 | $1,413 | $5,825 |
| Federal income tax (from driving) | $376 | $986 | $1,404 |
| Total federal tax | $3,994 | $2,399 | $7,229 |
| Share of profit | 15.6% | 24.0% | 17.5% |
| Share of earnings after fees | 10.0% | – | 11.1% |
All three are single filers taking the standard deduction. In example B, the $10,000 is profit after expenses; the driving profit is stacked on top of the salary, so most of it is taxed in the 12% and 22% brackets. That is why side-gig drivers with a good salary should save a higher percentage.
Example C, step by step
- Mileage: 15,000 × $0.725 + 15,000 × $0.76 = $22,275.
- Net profit: $65,000 − $22,275 − $1,500 = $41,225.
- SE tax: $41,225 × 92.35% × 15.3% = $5,825; half ($2,912) is deductible.
- AGI: $41,225 − $2,912 = $38,313.
- Taxable income before QBI: $38,313 − $16,100 standard deduction − $5,000 tips = $17,213.
- QBI deduction: 20% of $17,213 = $3,443 (the taxable-income limit applies).
- Taxable income: $13,770. Income tax: 10% of $12,400 + 12% of $1,370 = $1,404.
- Total: $5,825 + $1,404 = $7,229.
How much to set aside: simple rules
| Your situation | Set aside (federal) |
|---|---|
| Uber is your only income, profit under about $45,000 | 15% to 20% of profit |
| Uber is your only income, higher profit | 20% to 25% of profit |
| Side gig next to a W-2 job | 25% to 30% of profit |
| High household income (22% bracket or higher) | 30% to 35% of profit |
Add your state income tax: zero in states such as Texas, Florida, Nevada, Tennessee and Washington, and roughly 3% to 6% of profit in many others.
If tracking profit every week feels complicated, use your payouts instead. In examples A and C, the federal tax was 10% to 11% of earnings after fees, so saving 15% of every payout leaves a comfortable buffer, especially if your state has an income tax. Drivers with fewer deductible miles per dollar earned need more.
Where to keep the money
Open a separate account just for taxes and move your percentage there with every payout. A high-yield savings account earns interest until each quarterly payment is due. Compare options on our banks page.
What makes your tax bill higher or lower
- Higher: a W-2 job or a spouse's income, few business miles, no mileage log, high-tax state, missed quarterly payments (penalties).
- Lower: careful mileage tracking, deducting Uber's fees, tips deduction, contributions to a SEP IRA or solo 401(k), dependents and credits such as the Earned Income Tax Credit.
Frequently asked questions
What percentage should I save for taxes as an Uber driver?
A safe target is 25% to 30% of net profit plus state tax. Drivers with only Uber income and good mileage records often end up owing 15% to 20% of profit federally.
How do I calculate my Uber taxes?
Subtract Uber fees and business expenses to get net profit, calculate SE tax (profit × 92.35% × 15.3%), then calculate income tax on your taxable income after the standard, QBI and tips deductions, and add both.
Is it better to calculate based on gross or net earnings?
Taxes are based on net profit. Saving a percentage of payouts is simpler, but the right percentage depends on how much of your earnings is offset by mileage and other expenses.
Do I need to pay taxes every quarter?
If you expect to owe $1,000 or more for the year after withholding, yes. See our guide to Uber quarterly taxes.
Does this apply to Uber Eats too?
Yes. Uber Eats couriers calculate their taxes the same way. Delivery-specific deductions are in our Uber Eats tax guide.
