Uber Driver Taxes in Connecticut - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Connecticut

Navigating the scenic routes and bustling cities of Connecticut as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires Uber drivers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. This income is subject to both income tax and self-employment tax, which covers Social Security and Medicare taxes that are typically withheld from employee paychecks. If net earnings (income after expenses) exceed $400, self-employment tax applies at a rate of 15.3%.

How Connecticut Handles Gig Worker Taxes

As a resident of Connecticut, filing a state income tax return is mandatory, even if no state income tax is owed. Connecticut operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Connecticut residents who earn income as independent contractors, such as Uber drivers, will primarily use Form CT-1040, Connecticut Resident Income Tax Return, to report their earnings. Schedule 1 (Connecticut Adjustments to Federal AGI) will be used to adjust your federal adjusted gross income (AGI) to arrive at your Connecticut AGI. Connecticut also allows for deductions similar to those available on the federal level, such as business expenses. It's important to note that Connecticut does not automatically recognize the federal self-employment tax deduction; you may need to make specific adjustments on your CT-1040 to avoid double taxation. Connecticut also has a use tax on purchases made online or out-of-state that were not subject to sales tax, which may be relevant if you purchased supplies for your Uber driving business. Staying current with Connecticut’s Department of Revenue Services (DRS) updates is vital, as tax laws can change. You can find more information and forms on the DRS website: Connecticut Department of Revenue Services.

Top Tax Deductions for Connecticut Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies record-keeping and is often the most beneficial option.
• Tolls & Parking: Connecticut drivers frequently encounter tolls on I-95 and the Merritt Parkway. These toll expenses, along with parking fees incurred while actively driving for Uber, are deductible. Keep detailed records of all toll receipts.
• Phone & Data Plan: If you use your personal phone for Uber driving (navigation, accepting rides, etc.), you can deduct the percentage of your monthly bill that corresponds to business use. Accurate tracking of business vs. personal usage is essential.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries are deductible. Maintain receipts for all purchases.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (gas, oil changes, repairs, insurance, depreciation) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Uber and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. Failure to do so may result in penalties.