Uber Driver Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Oregon

Navigating the scenic byways of Oregon as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, earnings from Uber and other gig platforms are considered self-employment income, requiring careful tracking and reporting to both the IRS and the State of Oregon.

Federal law requires Uber drivers to report their income and expenses on Schedule C (Profit or Loss From Business) when filing their annual tax return (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 earnings by Uber.

How Oregon Handles Gig Worker Taxes

As a resident of Oregon, filing a state income tax return is mandatory, even if no federal tax is owed. Oregon utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form OR-40, the Oregon Individual Income Tax Return, to report their earnings. However, because Uber income is considered business income, Schedule C (federal) information will feed into Oregon Form OR-40, Schedule 1, to calculate your adjusted gross income. Oregon also allows for itemized deductions similar to the federal level, potentially reducing your taxable income. It's important to note that Oregon does not offer a standard deduction equivalent to the federal level; instead, it provides a limited number of itemized deductions and personal exemptions. Furthermore, Oregon has a minimum tax calculation that may apply, even if your itemized deductions significantly reduce your taxable income. Keep meticulous records of all income and expenses to accurately determine your Oregon tax liability. For detailed information and the latest updates, consult the Oregon Department of Revenue: Oregon Department of Revenue.

Top Tax Deductions for Oregon Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This simplifies expense tracking significantly.
• Tolls & Parking: While Oregon doesn't have extensive toll roads, any tolls incurred during rides, as well as parking fees directly related to picking up or dropping off passengers, are deductible.
• Phone & Data Plan: The portion of your cell phone and data plan used for Uber driving is deductible. Keep records of business usage 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.

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

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Uber does 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. Failure to do so may result in penalties.