Lyft Driver Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in New Hampshire

Navigating the scenic routes of the Granite State as a Lyft driver offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Lyft are subject to both federal and, despite New Hampshire’s reputation, certain federal taxes.

The IRS requires Lyft drivers to report their income on Schedule C (Profit or Loss from Business) as part of their 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 Lyft payouts.

How New Hampshire Handles Gig Worker Taxes

New Hampshire is unique in that it does not have a broad-based income tax. This means you won’t file a state income tax return based on your Lyft earnings. However, this does not exempt you from federal tax obligations. Lyft drivers are still fully subject to federal income tax and self-employment tax. New Hampshire does levy taxes on interest and dividends, but these are generally not applicable to Lyft driver income. A common question from drivers new to the gig economy in New Hampshire is whether the lack of state income tax means less paperwork – the answer is no, federal compliance remains essential. Furthermore, New Hampshire’s business tax structure, while generally not impacting individual Lyft drivers directly, is something to be aware of if a driver expands their operation to include employees or operates as a more formal business entity. It’s important to remember that while the state’s fiscal philosophy is tax-friendly, federal regulations still apply. For more information on New Hampshire’s tax system, visit the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/

Top Tax Deductions for New Hampshire Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given New Hampshire’s relatively stable gas prices compared to some states, the standard mileage rate is likely to be a strong choice for most drivers.
• Tolls & Parking: New Hampshire has limited toll roads, but any tolls incurred while actively driving for Lyft 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 and data plan that is used for business purposes. Keep a log of your driving time to accurately calculate this percentage.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries (if applicable) are deductible.

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

Understanding the 15.3% Self-Employment Tax

This tax, totaling 15.3%, covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a Lyft driver, you are responsible for paying both the employer and employee portions. Lyft does not withhold these taxes from your earnings, so it’s crucial to plan for this expense throughout the year, potentially through quarterly estimated tax payments to avoid penalties.