Uber Driver Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Mississippi

Navigating the Magnolia State as an Uber driver offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding how to properly report income and claim deductions is crucial for maximizing earnings and avoiding potential issues with the IRS and the Mississippi Department of Revenue.

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. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. These taxes aren’t automatically withheld, making proactive tax planning essential.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, a state income tax return is required, even if no state income tax is due. Mississippi operates under a flat income tax rate, currently at 5%. This means all taxable income is taxed at the same percentage. Uber drivers, classified as independent contractors, are responsible for calculating and remitting this tax on their net earnings. The primary form for self-employed individuals to report income and calculate tax liability is Form 83-101, Mississippi Individual Income Tax Return. It’s important to note that Mississippi does not have a separate tax form specifically for gig workers; the standard individual income tax return is used. Mississippi also allows for itemized deductions, which can potentially reduce your taxable income. Keep meticulous records of all income and expenses throughout the year to ensure accurate reporting. The state generally follows federal guidelines regarding deductions, but it’s always best to consult the Mississippi Department of Revenue website for the most up-to-date information and any specific state-level adjustments. Failure to file and pay state income tax can result in penalties and interest. Mississippi also offers various credits and deductions that may be applicable, so exploring these options is recommended.

For more information and resources, please visit the Mississippi Department of Revenue: https://www.dor.ms.gov/

Top Tax Deductions for Mississippi Drivers

• Standard Mileage: The most popular and often simplest deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Mississippi’s relatively lower gas prices compared to states like California, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred while actively driving for Uber are deductible. Parking fees directly related to pickups and drop-offs are also 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. 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 insulated food bags used specifically for Uber 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. Unlike traditional employment, Uber and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. Failing to pay estimated taxes can result in penalties.