Lyft Driver Taxes in Louisiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in Louisiana

Navigating the vibrant streets of New Orleans and Baton Rouge as a Lyft driver offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Lyft are considered self-employment income, requiring careful attention during tax season.

The IRS requires all Lyft drivers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, because no taxes are automatically withheld from your Lyft earnings, drivers are responsible for paying self-employment taxes, which cover both Social Security and Medicare. Failure to properly report income and pay these taxes can result in penalties and interest.

How Louisiana Handles Gig Worker Taxes

As a resident of Louisiana, a state income tax return is required, regardless of whether you owe any state income tax. Louisiana utilizes a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, Louisiana’s individual income tax rates range from 1.85% to 4.25%, depending on your filing status and taxable income. Lyft drivers operating within Louisiana must report their net earnings (income after deductions) on Form IT-540, Louisiana Resident Income Tax Return. This form is used to calculate your state income tax liability. Louisiana also allows for itemized deductions, which may further reduce your taxable income. It's important to note that Louisiana does not offer a specific "gig worker" tax form; self-employment income is reported through the standard individual income tax process. Keep meticulous records of all income and expenses to ensure accurate reporting. Louisiana’s Department of Revenue provides detailed information and resources for taxpayers, including downloadable forms and instructions.

You can find more information and resources on the Louisiana Department of Revenue website: https://www.revenue.louisiana.gov/

Top Tax Deductions for Louisiana Drivers

• Standard Mileage: The most popular and often simplest deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This rate covers wear and tear, gas, oil, and other vehicle-related expenses.
• Tolls & Parking: Louisiana drivers frequently encounter tolls on bridges and roadways around New Orleans. Keep detailed records of all toll expenses and parking fees incurred while actively driving for Lyft.
• Phone & Data Plan: The portion of your monthly phone and data plan used for Lyft driving is deductible. Carefully track the percentage of time your phone is used for work versus personal use.
• Vehicle-Related Costs: Expenses like car washes, air fresheners, phone mounts, dash cams, and insulated food bags (for delivering food via Lyft) are deductible.

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

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Lyft and other ride-sharing platforms 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. This tax is applied to your net earnings – your total Lyft income minus your business expenses. Earnings over $400 are subject to this tax.