Uber Driver Taxes in Massachusetts - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Massachusetts

Navigating the historic streets of Boston and beyond as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Uber and other gig platforms are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires Uber drivers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your earnings. Proactive tax planning and estimated tax payments throughout the year are highly recommended to avoid penalties.

How Massachusetts Handles Gig Worker Taxes

As a resident of Massachusetts, filing a state income tax return is mandatory, even if no state income tax was withheld from your Uber earnings. Massachusetts operates under a flat income tax rate, currently at 5.0%, for the 2025 tax year. This means all taxable income is taxed at the same rate. Self-employed individuals in Massachusetts will primarily use Form 1 (Massachusetts Form 1, Income Tax Return) to report their income and calculate their tax liability. Schedule SE (Massachusetts Schedule SE, Self-Employment Income) is used to calculate your Massachusetts self-employment tax. Massachusetts also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. Failure to do so can result in penalties. The Massachusetts Department of Revenue provides detailed guidance and resources for self-employed individuals, including information on estimated tax payments and available deductions. Remember to keep accurate records of all income and expenses related to your Uber driving activities, as these will be essential when preparing your state tax return. Massachusetts also offers various credits and deductions that may reduce your overall tax burden, so exploring these options is advisable.

You can find more information and resources on the Massachusetts Department of Revenue website: Massachusetts Department of Revenue

Top Tax Deductions for Massachusetts 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: Massachusetts drivers frequently encounter tolls on the Massachusetts Turnpike and other roadways. These toll expenses, along with parking fees incurred while actively driving for Uber, are deductible.
• Phone & Data Plan: If you use your phone for Uber-related activities (navigation, accepting rides, etc.), you can deduct the percentage of your monthly bill that corresponds to business use.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, and insulated food bags (if delivering food) are all deductible business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (gas, oil, repairs, insurance, depreciation) 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. Unlike traditional employment, Uber and other gig 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 both the IRS and the Massachusetts Department of Revenue.