Taxes for Uber & Lyft Drivers in NYC: Complete Guide

In short: as an Uber or Lyft driver in NYC you are, for taxes, a self-employed business owner. New York State says so directly — you are self-employed if you "generate income through the internet or using an app (rideshare, …)" (NYS Tax). You report your app income and expenses on Schedule C, then pay income tax and self-employment tax on the profit, plus New York State and, if you live in the city, NYC income tax. Nobody withholds it for you, so you usually pay quarterly.

This page is the map: what each tax is, what changed for 2026, and where to go for detail. It explains published rules, not your personal situation — use a preparer for that.

What's new for 2026

Several numbers changed this year. Each one is explained on its own page:

• Two IRS mileage rates: 72.5¢ a mile for January–June and 76¢ from July 1, 2026, after the IRS raised the rate because of fuel prices. Your mileage log must be split at July 1.
• 1099-NEC threshold rises to $2,000 for payments made in 2026 (it may be adjusted for inflation from 2027), and new boxes report cash tips and a tipped-occupation code.
• MCTMT threshold rises to $150,000 of net self-employment earnings per zone for 2026, from $50,000 for 2025 and earlier. A driver who paid MCTMT for 2025 may be under the line for 2026; check your own figure.
• Social Security wage base is $184,500 for 2026, up from $176,100 for 2025.
• No tax on tips (2025–2028) lists cab and app-based rideshare drivers as a tipped occupation (code 802).
• 1099-K threshold stays at over $20,000 and more than 200 transactions, after a 2025 law restored it.

What being self-employed means day to day

No one takes tax out of your weekly payout. You are responsible for three things an employer would normally do: setting money aside, sending payments four times a year, and keeping records that prove your income and costs. The IRS says you can't deduct amounts you only estimate, so a mileage log and receipts are part of the job. A separate bank account for driving money makes your records much easier to follow if the IRS or NYS ever asks.

Step 1: Know your income — and why the 1099-K looks big

App income usually arrives on a Form 1099-K. Payment apps must send it when payments are over $20,000 in more than 200 transactions, but may send one for less (IRS). Some payments may come on a 1099-NEC or 1099-MISC instead; their threshold is $2,000 for 2026 payments. The IRS says you must report gig income even without any form, including cash (IRS Gig economy tax center).

The 1099-K gross is not adjusted for fees and similar items, which the IRS says are not taxable income and can be deducted (IRS). In NYC, TLC rule 59B-18(f)(7) requires Uber and Lyft to give you the trip mileage and an itemization of deductions from the 1099-K gross along with the form (TLC Rules, ch. 59). Walk-through: your 1099-K vs what you earned. No form? Do I pay taxes without a 1099?

Tips are income too. TLC rule 59D-17(b) requires the app to pass you the entire tip; the new federal no tax on tips deduction can lower income tax on them for 2025–2028.

Step 2: Subtract your business costs

Your tax is on profit, so deductions matter twice: they lower income tax and self-employment tax.

• Your car: the IRS standard mileage rate — 72.5¢ a mile Jan–Jun 2026 and 76¢ from July 1, 2026 (as of 2026-10-12) — or your actual costs. See IRS mileage rate 2026 and standard mileage vs actual expenses.
• Tolls and business parking on top of either car method — but not tolls the app paid back. Rule 59D-17(c) requires the app to remit the entire toll you paid on a dispatched trip.
• Other costs of the business, and what you can never deduct (summonses, commuting, ordinary clothing): TLC driver deductions list.

Step 3: Self-employment tax

Self-employment tax is Social Security and Medicare for people who work for themselves: 15.3% — 12.4% Social Security plus 2.9% Medicare — owed when net earnings are $400 or more. You can deduct the employer-equivalent half when figuring adjusted gross income (IRS). For 2026 the Social Security part stops at $184,500 of combined wages and SE earnings (Federal Register). Full explanation with an example: self-employment tax for TLC drivers.

Step 4: New York State and City

• NYS income tax on the IT-201 if you are a resident, or IT-203 if not.
• NYC resident tax if you live in the Bronx, Brooklyn, Manhattan, Queens or Staten Island (NYS). Rates: how much NYC income tax do drivers pay? Living outside the city: do non-residents pay NYC income tax?
• MCTMT: owed only if your net self-employment earnings in a zone are over $50,000 for 2025 or over $150,000 for 2026 and later (NYS). See MCTMT for NYC drivers.
• NYC UBT: a return is required if total gross business income is over $95,000, but a credit wipes out UBT of $3,400 or less (NYC-202S instructions). Whether it applies to you: NYC UBT and TLC drivers.

Step 5: Pay during the year

Who must pay, safe harbors and how to pay online: quarterly estimated taxes for TLC drivers.

Step 6: File and keep records

If New York State sends you a letter asking for proof, follow the NYS tax letter checklist.

Getting help

• IRS: the Gig economy tax center has forms, record-keeping and filing help for gig workers.
• New York State: the self-employment resource center.
• A paid preparer who works with self-employed drivers can choose the car method, apply the tips deduction and handle UBT and MCTMT. Bring all forms and your mileage log.

For your pay rules (minimum per mile and minute, tolls, tips), see FHV driver minimum pay and the Uber and Lyft driver hub.