Uber Driver Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in New Hampshire

Navigating the scenic routes of the Granite State 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 both federal and, despite New Hampshire’s favorable tax climate, certain federal taxes.

The IRS requires Uber 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 tax, covering both Social Security and Medicare contributions, which are not automatically withheld from your earnings by Uber.

How New Hampshire Handles Gig Worker Taxes

New Hampshire is renowned for having no broad-based income tax, which means drivers won’t face a state income tax bill on their Uber earnings. However, this doesn’t mean tax obligations disappear. Federal income tax and self-employment tax still apply. New Hampshire does have taxes on interest and dividends, but these are generally not relevant to Uber driver income. A unique aspect of New Hampshire’s tax system is its reliance on property taxes to fund local services. While this doesn’t directly impact Uber driver income taxes, it’s a factor in the overall cost of living and doing business within the state. Drivers should be aware of potential local business licenses or permits required by their city or town, though these are less common for individual ride-sharing. Accurate record-keeping is paramount, even in a low-tax state, to maximize deductions and ensure compliance with federal regulations. The New Hampshire Department of Revenue Administration provides resources for understanding state tax laws, even though income tax is minimal: New Hampshire Department of Revenue Administration.

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 Uber are deductible. Parking fees directly related to pickups and drop-offs 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. Keep receipts!

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 comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because Uber doesn’t withhold these taxes from your payments, it’s your responsibility to calculate and pay them, typically through estimated tax payments throughout the year. Failing to do so can result in penalties.