Lyft Driver Taxes in Ohio - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in Ohio

Navigating the streets of cities like Columbus, Cleveland, and Cincinnati as a Lyft driver offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Lyft are considered self-employment income, requiring careful tax planning.

The IRS requires Lyft 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 Lyft payouts. Proper record-keeping throughout the year is essential to accurately calculate income and eligible deductions.

How Ohio Handles Gig Worker Taxes

As a resident of Ohio, filing a state income tax return is mandatory, even if no federal tax is owed. Ohio utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Ohio’s tax brackets are expected to remain similar to prior years, ranging from 0% to 3.992% depending on taxable income. Lyft drivers operating as independent contractors will report their self-employment income on Ohio Form IT-1040, and will likely need to file Schedule SE (Self-Employment Tax) with their federal return to calculate the Ohio income tax due on that income. Ohio also offers several credits and deductions that may reduce your tax liability. It's important to note that Ohio does not have a separate tax form specifically for gig workers; the standard individual income tax forms apply. Quarterly estimated tax payments may be required if your tax liability is expected to exceed $1,000. Failing to pay estimated taxes can result in penalties. Ohio’s Department of Taxation provides comprehensive resources and tools for taxpayers, including information on estimated taxes and filing requirements.

You can find more information and resources on the Ohio Department of Taxation website: https://tax.ohio.gov/

Top Tax Deductions for Ohio Drivers

• Standard Mileage: The most popular deduction for Lyft drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: Ohio drivers frequently encounter tolls on the Ohio Turnpike and may incur parking fees in cities. These expenses are fully deductible.
• Phone & Data Plan: If you use your phone for Lyft-related activities (navigation, accepting rides, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes, air fresheners, phone mounts, dash cams, and hot bags for food delivery (if applicable) are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (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

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Lyft and other ride-sharing platforms do not withhold these taxes from your earnings. You are responsible for calculating and paying this tax on your net earnings (income minus business expenses) exceeding $400. This tax is paid through quarterly estimated tax payments or when you file your annual tax return.