Uber Driver Taxes in Nevada - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Nevada

Navigating the vibrant streets of Las Vegas and Reno as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Uber and other gig platforms are subject to federal and, while limited, state tax considerations.

The IRS requires Uber drivers to report their income on Schedule C (Profit or Loss from Business) as self-employment income. This means drivers are responsible for paying both income tax and self-employment tax, which covers Social Security and Medicare. Platforms like Uber do not withhold these taxes, making proactive tax planning crucial.

How Nevada Handles Gig Worker Taxes

Nevada distinguishes itself as one of the few states with no state income tax. This means Nevada drivers are not subject to a state income tax on their Uber earnings. However, this does not exempt them from federal tax obligations. The lack of state income tax can be advantageous, but it also means drivers bear the full burden of federal income and self-employment taxes. Nevada’s economic reliance on tourism and gaming means a significant portion of state revenue comes from sales and other taxes, rather than income taxes. Therefore, while the state doesn’t directly tax earnings from driving, it’s vital to remember that federal tax laws still apply. Furthermore, drivers operating in Clark County (Las Vegas area) may be subject to the Clark County Economic Development Fund tax, depending on their gross revenue. It's important to consult with a tax professional to determine if this applies. For more information on Nevada’s tax structure, visit the Nevada Department of Taxation: https://tax.nv.gov/.

Top Tax Deductions for Nevada 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 Nevada’s sprawling cities and the distances often driven, this deduction can significantly reduce taxable income.
• Tolls & Parking: While Nevada doesn’t have extensive toll roads, drivers who occasionally venture into neighboring states with toll systems or incur parking fees related to pickups and drop-offs can deduct these expenses.
• Phone & Data Plan: The portion of your monthly phone and data plan used for Uber driving is deductible. Keep detailed records of business usage to justify the deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, and insulated food bags used for deliveries are deductible. Maintain receipts for these purchases.

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

Understanding the 15.3% Self-Employment Tax

Self-employment tax is 15.3% and covers both Social Security and Medicare taxes. Traditional employees have these taxes withheld from their paychecks. As an independent contractor, you are responsible for paying both the employer and employee portions of these taxes on net earnings exceeding $400. This is a significant tax obligation, so accurate record-keeping and estimated tax payments throughout the year are highly recommended.