Uber Driver Taxes in Idaho - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Idaho

Navigating the scenic routes of Idaho 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) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your earnings by Uber.

How Idaho Handles Gig Worker Taxes

As a resident of Idaho, you are required to file a state income tax return, even if no Idaho income tax is ultimately due. Idaho operates under a flat income tax rate, meaning all income is taxed at the same percentage. For the 2025 tax year, the Idaho income tax rate is 5.8%. Self-employed individuals, including Uber drivers, will use Form 40 to report their income and calculate their tax liability. Idaho also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in Idaho income tax. This prevents penalties at the end of the year. Idaho’s tax system recognizes the deductions available to federal Schedule C filers, allowing drivers to reduce their taxable income. Remember to keep meticulous records of all income and expenses. Idaho also offers a business income deduction, which may further reduce your tax burden. The Idaho State Tax Commission provides detailed guidance and resources for self-employed individuals; it's highly recommended to consult their website for the most up-to-date information and forms. Idaho also has specific rules regarding nexus for out-of-state drivers who may occasionally operate within the state, so understanding these rules is important if you are not a full-time Idaho resident.

You can find more information and resources on the Idaho State Tax Commission website: https://tax.idaho.gov/

Top Tax Deductions for Idaho Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the rate is 70 cents per mile. Given Idaho’s relatively moderate gas prices compared to states like California or Washington, the standard mileage rate is often a very advantageous option.
• Tolls & Parking: While Idaho doesn’t have extensive toll road systems, any tolls incurred during rides, as well as parking fees directly related to Uber trips, are deductible.
• Phone & Data Plan: You can deduct the percentage of your phone bill and data plan that is used for business purposes. Keep a log of your business usage to support this deduction.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries are all deductible business expenses.

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

Understanding the 15.3% Self-Employment Tax

This tax covers both 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. You will calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.