Uber Driver Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Delaware

Navigating the historic streets of Delaware 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 income on Schedule C (Profit or Loss From Business) as part of their Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions. Platforms such as Uber do not withhold these taxes, making proactive tax planning essential.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, a state income tax return is required, regardless of income level. Delaware utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Delaware drivers will file using Form 1040-D, the Delaware Individual Income Tax Return. This form is used to calculate your state income tax liability based on your federal adjusted gross income and applicable deductions and credits. Delaware also allows for itemized deductions similar to the federal level, though specific rules may differ. It's important to note that Delaware does not offer a standard deduction for single filers, but does for married filing jointly. Delaware also has a personal exemption amount that can reduce your taxable income. Keep meticulous records of all income and expenses related to your Uber driving activity, as Delaware’s Division of Revenue may request documentation to support your reported figures. Delaware’s tax laws are subject to change, so staying informed through official sources is vital. Remember to file your Delaware income tax return by April 15th, 2026 (or the extended deadline if applicable).

For more information and access to tax forms, please visit the Delaware Division of Revenue: https://revenue.delaware.gov/

Top Tax Deductions for Delaware Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: Delaware drivers frequently encounter tolls on routes like the Delaware Turnpike. These tolls, along with any parking fees incurred while actively driving for Uber, are deductible.
• 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 attributable to business use.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used specifically for Uber driving are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (gas, oil changes, repairs, insurance) 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. Because Uber and similar platforms classify drivers as independent contractors, they do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.