Taxes for Uber, Lyft and delivery drivers: a guide for the 2027 tax season

Forms you may receive

• Form 1099-K: the platform issues it if your payments for the year exceed $20,000 and more than 200 transactions.
• Form 1099-NEC: for 2026 payments it is issued starting at $2,000 (it used to be $600).
• Each app’s annual tax summary, with fares, fees, bonuses and tips.

Even if no form arrives, the income must still be reported. The app’s annual summary is the starting point for your return.

Mileage: 2026 has two rates

The IRS set 72.5 cents per business mile from January 1 to June 30, 2026, and 76 cents from July 1 to December 31. That is why your mileage log needs dates.

The app does not always show every work mile. Keep your own log with the date, miles and purpose of each trip.

What the mileage rate covers, and what is deducted separately

With the standard rate, gas, insurance, repairs, maintenance and depreciation are already included and are not added separately. Work tolls and parking can be deducted on top of the rate. Traffic tickets cannot.

Tips: a new deduction for 2025 through 2028

The 2025 law allows a deduction for qualified tips of up to $25,000 a year. Rideshare drivers and delivery workers are on the list of tipped occupations. You can take it even if you use the standard deduction.

It has conditions: a Social Security number valid for employment, filing jointly if married, and the deduction phases down above $150,000 of income ($300,000 joint). If you are self-employed, it cannot exceed your net income from that work.

In practice: download each app’s annual summary with tips listed separately and keep it.

Self-employment tax and estimated payments

On top of income tax, self-employed workers pay self-employment tax: 15.3% (Social Security and Medicare), calculated on net earnings.

Because the app does not withhold taxes, the IRS expects estimated payments during the year. The fourth-quarter 2026 payment is due Friday, January 15, 2027.