Uber Driver Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Washington

Navigating the evergreen state as an Uber driver offers flexibility, but also brings unique tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires Uber drivers in Washington to report their earnings on Schedule C (Profit or Loss from Business) as self-employment income. This means drivers are responsible for paying both income tax and self-employment tax – covering Social Security and Medicare – on net earnings exceeding $400. Platforms like Uber do not withhold these taxes, so proactive planning is essential.

How Washington Handles Gig Worker Taxes

Washington is famous for not having a personal income tax, a characteristic that often surprises newcomers. However, the state does levy a Business & Occupation (B&O) tax. This tax applies to the gross receipts of a business, regardless of profitability. For most Uber drivers, particularly those driving part-time, their gross income will likely fall below the threshold requiring B&O tax payment. As of late 2024, the small business B&O tax rate is 0.471% of gross income. It’s important to note that even if you don’t anticipate owing B&O tax, you may still need to register with the Washington State Department of Revenue. Failing to register when required can result in penalties. Keep accurate records of all income and expenses, and consult with a tax professional if you are unsure about your B&O tax obligations. The Department of Revenue provides detailed information and resources for gig workers on their website. Understanding these nuances is key to remaining compliant with Washington state tax laws.

You can find more information about Washington's B&O tax and registration requirements here: Washington State Department of Revenue

Top Tax Deductions for Washington Drivers

• Standard Mileage: The #1 deduction for most drivers. The 2025 rate is 70 cents per mile. Given Washington’s relatively high gas prices, especially in the Seattle-Tacoma metro area, carefully consider if the standard mileage rate or actual expenses method yields a larger deduction.
• Tolls & Parking: Washington has various toll roads and bridges, including those around Seattle and Tacoma. Keep detailed records of all toll expenses and parking fees incurred while actively driving for Uber.
• Phone & Data Plan: The percentage of your phone and data plan attributable to business use is deductible. Maintain a log of business calls and data usage to support your claim.
• Vehicle-Related Costs: Deductible expenses include items like car cleaning supplies, phone mounts, dash cams, and insulated food bags used for deliveries.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil, repairs, insurance) in the same tax year. Choose the method that results in the largest overall deduction.

Understanding the 15.3% Self-Employment Tax

Self-employment tax, totaling 15.3%, covers both 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. This is calculated on your net earnings (income minus business expenses) exceeding $400. Remember to factor this significant tax liability into your financial planning throughout the year.