Uber Driver Taxes in District of Columbia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in District of Columbia

Navigating the vibrant streets of the District of Columbia as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Uber and other gig platforms are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires Uber drivers to report their income and expenses on Schedule C (Profit or Loss from Business) when filing their federal income tax return. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions. Failure to properly account for these taxes can result in penalties and interest.

How District of Columbia Handles Gig Worker Taxes

As a resident of the District of Columbia, a state income tax return is required, regardless of income level. The District utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form D-140, the District of Columbia Individual Income Tax Return, to report their earnings. The District of Columbia Office of Tax and Revenue (OTR) provides detailed instructions and resources for self-employed taxpayers. It's important to note that the District also has a local business tax, which may apply depending on your net income. The threshold for filing a local business tax return changes annually, so it’s crucial to check the OTR website for the most up-to-date information. Furthermore, the District of Columbia offers various credits and deductions that may reduce your tax liability, such as the Earned Income Tax Credit (EITC) and credits for childcare expenses. Accurate record-keeping of all income and expenses is paramount to maximizing these benefits and ensuring compliance with District tax laws. The OTR also offers online filing options and assistance for taxpayers who need help preparing their returns.

You can find more information and resources on the District of Columbia Office of Tax and Revenue website: https://otr.dc.gov/

Top Tax Deductions for District of Columbia Drivers

• Standard Mileage: The most popular deduction for Uber drivers. The 2025 rate is 70 cents per mile for business use. Given the cost of maintaining a vehicle in a metropolitan area like Washington D.C., this rate provides significant tax relief.
• Tolls & Parking: Driving in the District and surrounding areas often involves tolls on roads like the Dulles Toll Road and parking fees, all of which are deductible business expenses. Keep detailed records of all toll and parking receipts.
• Phone & Data Plan: The portion of your cell phone and data plan used for Uber driving is deductible. If you use your phone 60% for Uber-related activities, you can deduct 60% of the bill.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries are all deductible as business expenses.

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

Understanding the 15.3% Self-Employment Tax

This tax comprises Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Uber driver, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. This is a significant tax obligation, so planning and setting aside funds throughout the year is highly recommended.