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In short: If you drive as an independent contractor (not an employee), you are self-employed for tax purposes; New York State names rideshare drivers as an example. That means you report all your driving income (with or without a 1099), you can deduct your business costs, you pay self-employment tax on top of income tax, and you may need to pay estimated tax during the year. New York State and New York City add their own taxes. For 2026, two numbers changed that matter to drivers: the IRS mileage rate rose to 76 cents from July 1, and the MCTMT now starts only above $150,000 of net earnings. This hub is general information, not tax advice.
Start here: five things to know
- All income counts. The IRS says gig income must be reported even if no 1099 shows it. Read do I pay taxes on Uber income without a 1099 and your 1099-K vs what you earned.
- Two mileage rates in 2026. Split your log at July 1. See IRS mileage rate 2026 for drivers and choose a method with standard mileage vs actual expenses.
- Pay during the year. If no tax is withheld from your driving income, you may need quarterly payments: quarterly estimated taxes for TLC drivers.
- New York layers. NYC residents pay NYC income tax, and the MCTMT applies only above the new threshold: MCTMT for NYC drivers.
- Keep records. If the state asks for proof of income, it wants specific documents covering at least six months: NYS tax letter checklist.
The 2026–27 tax calendar
The dates are New York State's; check the IRS Form 1040-ES instructions for the federal schedule.
What the state asks drivers to show
New York's checklist for taxi, limo and self-employed drivers (updated December 12, 2025) asks taxi drivers for a Verifone or CMT metered statement, Uber drivers for the Uber Tax Summary and all 1099-K and 1099-MISC forms, Lyft drivers for the year-end statement and 1099s, and limo/FHV drivers for 1099-MISC forms or daily trip sheets. It says documents must cover at least six months of the year, and it lists commuting and tickets or summonses as not deductible.
Guides by task
- By license type: taxes for Uber and Lyft drivers · taxes for yellow and green taxi drivers
- Deductions: tax deductions list for TLC drivers · no tax on tips (2025–2028) · can I deduct TLC fines
- New York: MCTMT · NYS tax letter asking for proof of income
Data and statistics
The full history back to 2011 is in IRS mileage rate history.
Tools for this topic
The tax deduction estimator compares mileage with actual costs, using both 2026 rates. The minimum pay estimator helps you check app income before it reaches your 1099.
Official contacts and sources
The IRS Gig Economy Tax Center covers federal rules for app and taxi drivers. New York State's self-employment page names rideshare drivers among the self-employed and explains estimated tax. For your own return, talk to a tax preparer; this hub explains the rules but cannot apply them to you.
Everything in this topic
Other topics
Frequently asked questions
Do I owe tax on Uber income if I didn't get a 1099?
Yes. The IRS says you must report gig economy income on your tax return even if it is not reported on a Form 1099-K, 1099-MISC, 1099-NEC or W-2.
When will I get a Form 1099-K?
Payment platforms must file a 1099-K when your payments are over $20,000 and there are more than 200 transactions in the year, after the 2025 federal law restored that threshold. You may still get one below it, and you still owe tax on all income.
When are 2026 estimated tax payments due?
New York State lists April 15, June 15 and September 15, 2026, and January 15, 2027 for calendar-year filers. Check the IRS Form 1040-ES instructions for the federal dates.
Do drivers still owe the MCTMT in 2026?
Only above a higher threshold. New York says the self-employed MCTMT applies when net earnings in a zone exceed $50,000 for 2025 and earlier, and $150,000 for tax year 2026 and after.
Can I deduct TLC fines?
No. New York State's checklist for taxi, limo and self-employed drivers lists tickets or summonses among expenses that are not deductible.
Sources
Last reviewed against the official sources on .
- IRS: Gig economy tax center irs.gov
- IRS: Standard mileage rates irs.gov
- IRS: Form 1099-K threshold FAQs (dollar limit reverts to $20,000) irs.gov
- NYS Tax: Taxi, limo and self-employed drivers (audit letter checklist) tax.ny.gov
- NYS Tax: Estimated tax payment due dates tax.ny.gov
- NYS Tax: New York City, Yonkers and MCTMT tax.ny.gov
Spotted something out of date? Tell us and we'll check it against the official source.
TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.