Uber Driver Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Uber Drivers in Wisconsin

Navigating the scenic routes and bustling cities of Wisconsin 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 to report their income on Schedule C (Profit or Loss From Business) with 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 Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, filing a state income tax return is mandatory, even if your federal tax liability is zero. Wisconsin operates on a graduated income tax system, meaning the tax rate increases as your income rises. For self-employed individuals, the primary form used to report income and calculate tax liability is Form 1040-ES, along with Schedule 1 and Schedule SE (for self-employment tax calculation). Wisconsin also requires you to report your federal adjusted gross income (AGI) on your state return. Wisconsin’s Department of Revenue offers resources specifically for self-employed individuals, including estimated tax payments, which are generally required if you expect to owe $1,000 or more in Wisconsin income tax. Wisconsin also allows for a deduction for qualified business income (QBI), potentially reducing your taxable income. It's important to note that Wisconsin's tax laws can change, so staying updated through the Department of Revenue is essential. Wisconsin also has a minimum tax calculation that may apply if itemized deductions significantly reduce your tax liability. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate reporting and maximize potential deductions.

You can find more information and resources on the Wisconsin Department of Revenue website: https://www.revenue.wi.gov/

Top Tax Deductions for Wisconsin Drivers

• Standard Mileage: The most popular deduction for Uber drivers. For the 2025 tax year, the rate is 70 cents per mile. Given Wisconsin's variable weather conditions and potential for significant mileage, this method often proves advantageous.
• Tolls & Parking: While Wisconsin doesn't have extensive toll roads, any tolls incurred while actively driving for Uber are deductible. Parking fees directly related to pickups and drop-offs are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone bill and data plan that is used for business purposes. Keep a log of business-related calls and data usage to support your 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, and insurance) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because Uber and similar platforms do not withhold these taxes, it’s your responsibility to calculate and pay them, typically through estimated tax payments made quarterly to both the IRS and the Wisconsin Department of Revenue. Failing to do so can result in penalties.