Uber Driver Taxes in Pennsylvania - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Pennsylvania

Navigating the historic streets of Philadelphia or the rolling hills of Lancaster County 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 diligent record-keeping and accurate tax filing.

The IRS requires Uber 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 earnings. Proper planning and estimated tax payments throughout the year can help avoid penalties.

How Pennsylvania Handles Gig Worker Taxes

As a resident of Pennsylvania, a state income tax return is required, regardless of income level. Pennsylvania operates under a flat income tax rate, currently at 3.07%. This means all taxable income is taxed at the same percentage. Uber drivers, classified as self-employed individuals, must report their earnings and calculate their tax liability using Pennsylvania Form REV-65, the Pennsylvania Schedule C, which mirrors the federal Schedule C. This form is then filed with Pennsylvania Form PA-1040, the state’s individual income tax return.

Pennsylvania does not offer a specific deduction for self-employment tax on the state return, unlike some other states. However, all allowable business expenses, as calculated on Schedule C, reduce your taxable income, thereby lowering your Pennsylvania tax liability. It’s important to maintain detailed records of all income and expenses. Pennsylvania also requires the filing of a Schedule W-2 if you have employees. The Pennsylvania Department of Revenue provides comprehensive resources for self-employed individuals, including information on estimated taxes and filing requirements. Failure to file and pay on time can result in penalties and interest.

For more information and resources, please visit the Pennsylvania Department of Revenue: https://www.revenue.pa.gov/

Top Tax Deductions for Pennsylvania Drivers

• Standard Mileage: The most popular and often simplest deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This rate covers wear and tear, gas, oil, and other vehicle-related expenses.
• Tolls & Parking: Pennsylvania drivers frequently encounter tolls on the Pennsylvania Turnpike and other roadways. These tolls, along with parking fees incurred while actively working, are deductible. Keep all receipts!
• Phone & Data Plan: If you use your phone for Uber-related activities (navigation, accepting rides, communication), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, first-aid kits, and insulated food bags used for deliveries are all deductible business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (gas, oil, repairs, insurance, depreciation) 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 where these taxes are withheld from your paycheck, as an Uber driver, you are responsible for paying both the employer and employee portions. This tax applies to net earnings exceeding $400. You can reduce your self-employment tax liability by deducting one-half of your self-employment tax from your gross income.