Lyft Driver Taxes in Wyoming - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Lyft Drivers in Wyoming

Navigating the wide-open roads of Wyoming as a Lyft driver offers flexibility, but it also comes with tax responsibilities. Earnings from ridesharing are considered self-employment income, requiring careful tracking and reporting to the IRS.

The federal government requires all Lyft drivers to report their income on Schedule C (Profit or Loss from Business) when filing their annual tax return. Furthermore, because you are self-employed, you’re responsible for paying self-employment taxes – covering both Social Security and Medicare – on any net earnings exceeding $400. This is in addition to regular income tax.

How Wyoming Handles Gig Worker Taxes

Wyoming stands out as one of the few states with no state income tax. This means you won’t be filing a state income tax return based on your Lyft earnings. However, this does not exempt you from federal tax obligations. The IRS still requires accurate reporting of all income, regardless of the state of operation. Wyoming’s favorable tax climate, particularly the absence of state income tax, can be attractive to independent contractors, but it’s crucial to remember that federal taxes remain mandatory. Many Wyoming drivers utilize their earnings to enjoy the state’s outdoor recreation opportunities – from Yellowstone and Grand Teton National Parks to world-class fly fishing – and proper tax planning ensures continued access to these pursuits. While Wyoming doesn’t have a specific classification for “gig workers,” the IRS treats all independent contractors, including Lyft drivers, the same way. It’s important to maintain meticulous records of income and expenses throughout the year to simplify the tax filing process. For general Wyoming tax information, please visit the Wyoming Department of Revenue: https://revenue.wyo.gov/

Top Tax Deductions for Wyoming Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Wyoming’s relatively lower gas prices compared to coastal states, the standard mileage rate is likely to be a very advantageous option for most drivers.
• Tolls & Parking: While Wyoming doesn’t have extensive toll roads, any parking fees incurred while actively providing rides can be deducted. Keep receipts for these expenses.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. If you use your phone 70% of the time for Lyft-related activities (navigation, driver app, communication with passengers), you can deduct 70% of the bill.
• Vehicle-Related Costs: Expenses like car washes, air fresheners, phone mounts, dash cams, and insulated food/drink carriers used for passenger comfort are deductible. Keep receipts for these items.

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

Understanding the 15.3% Self-Employment Tax

As a Lyft driver, you are considered self-employed. This means you are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% on net earnings over $400. Lyft and other ridesharing platforms do not withhold these taxes from your earnings, so it’s crucial to plan for this liability by making estimated tax payments throughout the year to avoid penalties.