Lyft Driver Taxes in Kansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in Kansas

Navigating the Sunflower State as a rideshare driver with Lyft 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 Lyft drivers to report their earnings on Schedule C (Profit or Loss From Business) as part of their federal income tax return. Furthermore, because you are self-employed, you’ll be responsible for paying self-employment taxes, which cover both Social Security and Medicare. This is in addition to your regular income tax liability.

How Kansas Handles Gig Worker Taxes

As a resident of Kansas, you are required to file a state income tax return, even if no Kansas income tax is due. Kansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Kansas income tax returns are filed using Form K-40. Self-employed individuals, including Lyft drivers, will also need to complete Schedule K-1 (Form K-40-A) to report business income and expenses. Kansas generally conforms to federal adjusted gross income (AGI), meaning income reported on your federal Schedule C will directly impact your Kansas tax liability. It’s important to accurately track all income and expenses throughout the year to ensure proper reporting. Kansas also allows for itemized deductions similar to the federal level, potentially reducing your overall tax burden. Keep detailed records of all business-related expenses, as these can significantly lower your taxable income. The Kansas Department of Revenue provides resources and information for self-employed individuals; you can find more details at the Kansas Department of Revenue website.

Top Tax Deductions for Kansas Drivers

• Standard Mileage: The most popular deduction for Lyft drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Kansas’s relatively moderate gas prices, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While Kansas doesn’t have extensive toll road systems, any tolls incurred while actively driving for Lyft are deductible. Parking fees directly related to picking up or dropping off passengers are also deductible.
• Phone & Data Plan: You can deduct the percentage of your monthly phone 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 hot bags for food delivery (if you also drive for delivery services) are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance, and depreciation) in the same 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 your employer withholds these taxes, as a Lyft driver, you are responsible for paying both the employer and employee portions. This combined rate is 15.3% on net earnings over $400. Remember to factor this into your tax planning throughout the year to avoid surprises during tax filing.