Free Uber Driver Tax Calculator
Uber takes roughly 25% before you even see your earnings. Then add gas, mileage wear-and-tear, and the 15.3% self-employment tax — and your real hourly rate can look very different from what the app shows. This calculator does the full math.
Uber Tax Questions — Answered
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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 Year | Business Mileage Rate | Deduction on 20,000 Miles |
|---|---|---|
| 2025 | 70.0 cents/mile | $14,000 |
| 2026 | 72.5 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.
See what you're actually making — week after week
GigExit Pro tracks your real hourly rate after gas, miles, vehicle wear, and self-employment tax. Not what the app shows — what you actually keep.
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