Uber Driver Taxes in Utah - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Utah

Navigating the scenic routes of Salt Lake City and Provo 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 Utah Handles Gig Worker Taxes

As a resident of Utah, filing a state income tax return is mandatory, even if no federal tax is owed. Utah operates under a flat income tax rate, currently at 4.85% for the 2025 tax year. This means all taxable income is taxed at the same rate, simplifying the state tax calculation. Self-employed individuals, including Uber drivers, will use Form TC-40, the Utah Individual Income Tax Return, to report their earnings and deductions. Utah also allows for a deduction for qualified business income (QBI), potentially reducing your taxable income. The state generally conforms to federal deductions, meaning many of the deductions available on your federal Schedule C can also be claimed on your Utah return. It's important to note that Utah requires the reporting of all self-employment income, and the state tax authorities actively audit independent contractors. Maintaining detailed records of income and expenses is vital. For specific guidance and forms, refer to the Utah State Tax Commission website: https://tax.utah.gov/. Remember to consider any potential local taxes or fees depending on the city or county where you operate. Utah's tax laws are subject to change, so staying updated through official sources is crucial for accurate filing.

Top Tax Deductions for Utah Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the rate is 70 cents per mile. Given Utah's diverse terrain and potential for significant mileage, this can result in substantial savings.
• Tolls & Parking: While Utah 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 a log of business use to accurately calculate the percentage.
• Vehicle-Related Costs: Expenses like car washes, air fresheners, phone mounts, dash cams, 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 greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises Social Security and Medicare taxes. 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, totaling 15.3% on net earnings exceeding $400. This is a significant tax liability, so accurate income tracking and potential quarterly estimated tax payments are essential.