Uber Driver Taxes in Louisiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Louisiana

Navigating the vibrant streets of New Orleans and Baton Rouge 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 earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. This means not only income tax, but also self-employment tax – essentially Social Security and Medicare taxes – apply to net earnings exceeding $400. Accurate record-keeping throughout the year is essential to maximize deductions and minimize tax liability.

How Louisiana Handles Gig Worker Taxes

As a resident of Louisiana, a state income tax return is required, regardless of income level. Louisiana utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Louisiana’s income tax brackets are subject to change, but generally range from 1.85% to 4.25%. Self-employed individuals, including Uber drivers, must report their income and calculate their state tax liability using Form IT-540, Louisiana Resident Income Tax Return.

Louisiana also allows for certain deductions that can reduce your state tax burden. While many federal deductions are mirrored at the state level, it’s important to consult the Louisiana Department of Revenue for specific rules and limitations. For example, Louisiana offers a standard deduction amount that may differ from the federal standard deduction. Additionally, Louisiana allows itemized deductions similar to the federal level, such as medical expenses and charitable contributions, which can further reduce taxable income.

Louisiana does not have a separate self-employment tax like the federal government. However, the federal self-employment tax is still applicable, and the state income tax is calculated on your net earnings after accounting for the federal self-employment tax deduction. It is highly recommended to consult with a tax professional familiar with Louisiana tax laws to ensure accurate filing and maximize potential savings. You can find more information and access tax forms on the Louisiana Department of Revenue website: Louisiana Department of Revenue.

Top Tax Deductions for Louisiana Drivers

• Standard Mileage: The #1 deduction for most drivers. The 2025 rate is 70 cents per mile. Given Louisiana’s relatively moderate gas prices compared to states like California, the standard mileage rate is often the most advantageous method for calculating vehicle expenses.
• Tolls & Parking: Louisiana has various toll bridges and parking fees, particularly in the New Orleans area. Keep detailed records of all toll expenses and parking fees incurred while actively driving for Uber.
• Phone & Data Plan: The portion of your monthly phone and data plan used for Uber driving is deductible. Maintain a log of business use to accurately determine the deductible percentage.
• Vehicle-Related Costs: Expenses like car washes, air fresheners, phone mounts, dash cams, and insulated food bags used for deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that yields the largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment 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 of these taxes. Platforms like Uber do not withhold these taxes, so it’s crucial to plan for this expense throughout the year, potentially making estimated tax payments quarterly to avoid penalties.