Uber Driver Taxes in Maine - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Maine

Navigating the scenic routes of Maine 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 Maine Handles Gig Worker Taxes

As a resident of Maine, filing a state income tax return is mandatory, even if no federal tax is owed. Maine utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Maine residents who are self-employed will primarily use Form 1040ME, Maine Individual Income Tax Return, to report their earnings. This form requires you to calculate your adjusted gross income (AGI) from your federal return and then apply Maine’s tax rates to determine your state income tax liability. Maine also allows for itemized deductions similar to the federal level, which can potentially reduce your taxable income. It's important to note that Maine conforms to many federal tax provisions, but there can be differences, particularly regarding deductions and credits. Maine also has a tax on business income, which may apply depending on the structure of your Uber driving activity. Keeping meticulous records of all income and expenses is vital for accurate state tax filing. The Maine Revenue Services website provides detailed information and resources for self-employed individuals. Failure to file or pay taxes on time can result in penalties and interest.

Top Tax Deductions for Maine Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Maine’s rural areas and potential for longer trips between fares, this rate can significantly reduce your tax burden.
• Tolls & Parking: Maine doesn’t have extensive toll roads, but any tolls incurred while actively driving for Uber 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 phone bill that corresponds to business use. Keep a log of the time spent using your phone for Uber-related activities to justify the deduction.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, 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, oil changes, repairs, insurance) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because Uber and other platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them, typically through estimated tax payments throughout the year to avoid penalties.

Resource: Maine Revenue Services