What taxes do Uber Eats drivers owe?
As an independent contractor, you're responsible for paying your own taxes — Uber withholds nothing. Three separate taxes apply to your net profit:
| Tax type | Rate | Notes |
|---|---|---|
| Self-employment tax | 15.3% of net profit | Covers Social Security and Medicare — both halves |
| Federal income tax | 10–22% (most drivers) | Based on total taxable income for the year |
| State income tax | 0–9.3% depending on state | 9 states have no state income tax |
These taxes apply to your net profit — not your gross earnings. Net profit is what you earned minus your business deductions, primarily mileage. A driver who grossed $18,000 but drove 16,000 business miles has a net profit of roughly $6,800 — dramatically lower than their gross.
The Uber service fee is not your income. Uber keeps approximately 25–30% of each order value before it ever hits your account. Your 1099 reflects what Uber paid you — not the order total. You are only taxed on what you actually received.
- →What taxes do Uber Eats drivers owe?
- →Uber sends two 1099s — here's the difference
- →The mileage deduction for Uber Eats
- →Other deductions Uber Eats drivers can claim
- →Uber Eats vs DoorDash vs Grubhub — same taxes, different 1099s
- →Quarterly estimated taxes for Uber Eats drivers
- →Frequently asked questions
- →The bottom line
Uber sends two 1099s — here's the difference
Unlike DoorDash, which sends a single 1099-NEC, Uber Eats drivers may receive two different 1099 forms depending on how their income was categorized.
1099-K: delivery and tip income
The 1099-K covers payments processed through the Uber app — your delivery earnings and tips. The 1099-K threshold has been in flux: $20,000 in prior years, dropping to $5,000 for 2024, $2,500 for 2025, and headed to $600 eventually. If your gross delivery earnings exceeded the threshold, you'll get a 1099-K.
1099-NEC: bonuses, referrals, and incentives
The 1099-NEC covers non-delivery payments of $600 or more — referral bonuses, promotional incentives, and other direct payments from Uber. This is the same form DoorDash sends for all earnings.
How to handle both: Add the totals from your 1099-K and 1099-NEC together. Report the combined amount as gross income on Schedule C. Then deduct your mileage and other expenses on the same Schedule C. You don't file them separately — they both feed into the same form.
If you earned below the 1099-K threshold and don't receive a form, you still owe tax on every dollar earned. The threshold is a paperwork trigger, not a tax exemption. Report your earnings using your own records or the Uber driver app's earnings summary.
The mileage deduction for Uber Eats
The IRS standard mileage deduction is the most impactful deduction available to food delivery drivers. Every business mile you drive reduces your taxable income by:
- 2024 rate: 67¢ per mile
- 2025 rate: 70¢ per mile (current)
- 2025 rate: 70¢ per mile
What miles count for Uber Eats drivers
- Restaurant to customer — always deductible
- Customer to next restaurant — deductible while the app is on and you're accepting orders
- Driving between restaurants while waiting for the next order with the app open
What miles do NOT count
- Home to first restaurant — this is a commute and is not deductible
- Last restaurant to home — same rule, not deductible
- Personal errands you run while the app is off
The Uber app undercounts your miles. The Uber driver app logs only "active" delivery miles — restaurant to customer. It misses the miles you drive between orders while waiting for the next ping. Independent tracking typically captures 30–50% more deductible miles than the app reports. Use MileIQ, Everlance, or Stride and let it run in the background.
Real example: A driver earns $16,000 gross from Uber Eats and independently tracked 15,000 business miles. At 70¢/mile, that's a $10,500 deduction. Their taxable net profit drops to $5,500 — and their total tax bill falls from roughly $4,500 to about $1,600. That one deduction is worth nearly $3,000 in taxes avoided.
Other deductions Uber Eats drivers can claim
Beyond mileage, there are several legitimate deductions delivery drivers frequently miss:
- Phone — business-use percentage: If you use your phone 60% for delivery work, 60% of your phone purchase cost and monthly plan is deductible
- Phone plan: Same business-use percentage applies to your monthly bill
- Insulated delivery bags and hot bags: Any bags you purchased to keep food hot or cold
- Car phone mount: A dedicated mount for the dashboard counts
- Portable charger and cables: Used to keep your phone charged while delivering
- Parking fees: Parking costs you paid while actively delivering (not parking tickets)
- Tolls: Tolls incurred during deliveries, if not already captured in your mileage log
Items you cannot deduct: speeding tickets and traffic fines (never deductible), personal vehicle purchases (complex depreciation rules apply and rarely pencil out over standard mileage), or meals you eat while on the road.
Uber Eats vs DoorDash vs Grubhub — same taxes, different 1099s
All three gig delivery platforms treat you as an independent contractor. The tax treatment on your return is identical — Schedule C, self-employment tax, mileage deduction. The difference is in which 1099 form each sends.
| Platform | 1099 type sent | Threshold | Notes |
|---|---|---|---|
| Uber Eats | 1099-K + 1099-NEC | $5,000 (2024) / $2,500 (2025) for 1099-K; $600 for 1099-NEC | Two forms possible |
| DoorDash | 1099-NEC | $600 | Via Stripe Express |
| Grubhub | 1099-NEC | $600 | Via Stripe Express |
If you drive for multiple platforms — sometimes called "multi-apping" — you combine all income and expenses on a single Schedule C. You don't file a separate Schedule C per platform. Add up all gross earnings from every 1099, then deduct your total business miles and other expenses. The IRS sees one self-employment business, not three separate ones.
Multi-apping tip: Keep one mileage log that tracks all your driving regardless of which app has the active order. When a Grubhub order ends and you're waiting for an Uber Eats ping with both apps open, those miles are still deductible business miles.
Quarterly estimated taxes for Uber Eats drivers
If you expect to owe more than $1,000 in federal tax for the year, the IRS requires quarterly estimated payments. This applies to most drivers who earn meaningful income from Uber Eats. The four deadlines for 2025 are:
- April 15, 2025 — for income earned January–March
- June 16, 2025 — for income earned April–May
- September 15, 2025 — for income earned June–August
- January 15, 2026 — for income earned September–December
A simple formula to estimate your quarterly set-aside:
(Gross earnings − estimated mileage deduction) × 0.30 = approximate tax to set aside per quarter
This 30% figure covers self-employment tax (15.3%) plus a rough federal income tax estimate. If your state has income tax, increase the percentage slightly. Pay at IRS.gov/payments — it takes about 10 minutes.
If your W-2 job withholds enough: If you also have a traditional employer that withholds taxes and your W-2 withholding is large enough to cover your total tax liability (including Uber Eats income), you may not need to pay quarterly. Run the numbers each spring — a tax professional can help you calibrate.
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Check my delivery hustle — free →Frequently asked questions
Is Uber Eats income taxed differently from Uber rideshare income?
No — both are self-employment income taxed the same way. But the mileage calculation differs: Uber Eats drivers go restaurant-to-customer; rideshare drivers go pickup-to-dropoff. Keep them separate in your mileage log so you can document which miles belong to which service if the IRS ever asks.
What is the Uber service fee and is it deductible?
Uber keeps approximately 25–30% of each order before paying you. You're only taxed on what you receive — the platform fee is already excluded from your 1099. You don't need to deduct it separately; it was never part of your income in the first place.
Does Uber Eats track my mileage for taxes?
The Uber driver app tracks some mileage but it's often incomplete — it captures only active delivery miles and misses the driving you do between orders while the app is open. Use a dedicated app like MileIQ or Everlance to track every business mile independently and capture the full deduction you're entitled to.
Can I deduct my phone for Uber Eats?
Yes — the business-use percentage of your phone and phone plan is deductible. If you use your phone 70% for delivery work (running the app, checking earnings, navigating), then 70% of your phone purchase cost and monthly plan fee is deductible on Schedule C.
Do I need an LLC to deliver for Uber Eats?
No — most delivery drivers operate as sole proprietors and file Schedule C. An LLC adds liability protection (your personal assets are separated from the business) but doesn't change your federal tax rate unless you also elect S-corp tax treatment. Most drivers earning under $50,000 from delivery see little tax benefit from an LLC.
The bottom line
Uber Eats drivers owe self-employment tax plus income tax on net profit — but the mileage deduction typically cuts taxable income in half or more. The drivers who get hit hardest in April are the ones who relied on the Uber app's mileage numbers (which undercount significantly), didn't set aside money throughout the year, or forgot that bonuses and referral income are fully taxable.
Install a mileage tracker today, set aside 25–30% of every payout, and pay quarterly if you'll owe over $1,000 for the year. If you drive for multiple platforms, keep one mileage log and one Schedule C. That's the entire playbook.
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