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Reality check: After Uber's ~25% service fee, gas, mileage, and self-employment tax, many Uber drivers net between $8–$15/hour — far below what the app suggests.
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// Earnings
Platform
🚗
Uber / Uber Eats
Gross Earnings per week
$
Hours Worked active + wait time
hrs
Platform Fee what they take
$
Tips Received
$
// Vehicle Expenses
Miles Driven this week
mi
Gas Spent This Week
$
Maintenance weekly avg
$
Use IRS mileage rate (covers gas, maintenance & wear)
// Other Expenses
Phone / Data weekly portion
$
Insurance weekly portion
$
Other
$
Include self-employment tax (15.3%)
// Your Results
Real Hourly Rate
Enter your numbers to calculate
Gross earnings$0.00
Tips$0.00
Platform fees–$0.00
Gas & mileage–$0.00
Maintenance–$0.00
IRS wear & tear
Phone / insurance / other–$0.00
SE tax (15.3%)
Net / week $0.00
Expenses as % of gross0%
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Uber Tax Questions — Answered

Uber typically takes 25–30% of each fare as a service fee, though this varies by market and trip type. UberEats fees can run higher. GigExit pre-fills the 25% standard — adjust it to match your actual payout breakdown in the Uber Driver app.
Yes. Uber classifies all drivers as independent contractors. You owe the full 15.3% self-employment tax on net earnings, plus federal and state income tax. Uber will send a 1099-K or 1099-NEC if you earn above the reporting threshold.
Yes. The 2026 IRS standard mileage rate is 72.5 cents per mile for business use. Uber drivers can deduct miles driven during trips and between trips while the app is active. Keep a mileage log — the IRS requires documentation.
Set aside 25–30% of net earnings. If you drive full-time or are in a high-tax state, aim for 30%. Remember: you're not paying tax on gross earnings — use GigExit to find your net after all deductions first.
The tax treatment is the same — both are 1099 self-employment income subject to SE tax and deductible expenses. The main difference is fee structure and average mileage per order vs. per trip, which affects your net rate differently.

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Is the 2026 mileage rate 70 cents or 72.5 cents?

The 2026 IRS standard mileage rate is 72.5 cents per mile for business use — the 70-cent rate belonged to 2025 and no longer applies. For an Uber driver, every business mile driven on or after January 1, 2026 deducts at 72.5 cents per mile. The standard mileage rate covers fuel, depreciation, maintenance, and insurance in a single per-mile figure, so an Uber driver using the standard mileage rate does not also deduct gas receipts on top. An Uber driver logging 20,000 business miles in 2026 claims a mileage deduction of $14,500 (20,000 × $0.725). The 72.5-cent rate applies equally to electric, hybrid, and gas vehicles. The IRS requires a contemporaneous mileage log to support the deduction.

Tax YearBusiness Mileage RateDeduction on 20,000 Miles
202570.0 cents/mile$14,000
202672.5 cents/mile$14,500

Do gig drivers pay self-employment tax on tips?

Yes. An Uber driver pays self-employment tax on tips, because the IRS counts rider tips as part of net self-employment income. The self-employment tax rate is 15.3% on net independent-contractor earnings (12.4% for Social Security and 2.9% for Medicare), and tip income is folded into total earnings before the 15.3% is applied. An Uber driver who collects $6,000 in fares and $900 in tips pays self-employment tax on the full $6,900 of net earnings. Self-employment tax is separate from and in addition to federal income tax, so tip income carries both. Claiming the 72.5-cent mileage deduction lowers net earnings first, which trims the self-employment tax and the income tax owed on those fares and tips.

  • Fares: subject to 15.3% self-employment tax
  • Tips: subject to 15.3% self-employment tax
  • Mileage deduction: reduces net earnings before self-employment tax is calculated

How accurate is the mileage summary inside GigExit?

The GigExit mileage summary uses the official 72.5-cent 2026 IRS rate on every business mile entered, so the deduction GigExit displays lines up with IRS Notice 2026-10. The GigExit calculator multiplies logged business miles by 72.5 cents, subtracts the mileage deduction from gross fares and tips, and then applies the 15.3% self-employment tax baseline to the remaining net earnings. The GigExit mileage summary avoids double-counting: since the standard mileage rate already includes gas, maintenance, and depreciation, the GigExit calculator disables separate fuel and repair fields whenever the IRS standard rate is active. A GigExit mileage summary is a planning estimate rather than a filed return, so an Uber driver keeps a contemporaneous mileage log to back up the deduction with the IRS.

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