Uber Tax Deductions in Texas 2026
Last updated: June 2026 · By Ethan Blake · ~5 min read · 1,400 words
2026 Tax Summary — Uber Texas
On $35,000 net income: federal total ~$7,750. Quarterly payment: $1,938. Set aside 22% of every payment. Track every mile at 72.5¢. State tax: None — Texas has no state income tax.
Uber drivers and shoppers are independent contractors. You receive a 1099-NEC or 1099-K and file Schedule C. Uber miles include driving to the passenger, the trip, and deadhead miles between rides. Texas long-haul routes (Houston to Galveston, Dallas suburb runs) accumulate mileage quickly.
IRS Mileage: $0.725/mile
SE Tax: 15.3%
State: TX
Updated June 2026
OBBBA 2026
Texas Tax Rules 2026
Texas Uber drivers pay only federal income tax and self-employment tax. No state filing required. Texas is one of the most tax-friendly states for gig workers.
Tax Deductions for Uber Drivers in Texas 2026
Mileage
$0.725/mile
All Uber miles — to passenger, trip, and between-ride deadhead. No upper limit.
Phone & Data
Business %
Proportion of your plan used for the Uber Driver app, navigation, and rider contact.
Car Maintenance
Business %
Oil, tyres, brakes — Texas summer heat increases wear. Deduct proportional to Uber miles.
Car Washes
Business %
Regular car washes to maintain Uber passenger standards are deductible.
Water & Snacks
100%
Bottled water and snacks provided to Uber passengers are 100% deductible.
Tolls
100%
Texas toll road charges (TxTag, TollTag, EZ TAG) during Uber trips.
SE Tax Deduction
50% of SE tax
Deduct 50% of your 15.3% SE tax above the line on Schedule 1.
Health Insurance
100%
Self-employed health insurance premiums deductible above the line on Schedule 1.
Key Takeaways
- Mileage is your largest deduction — track every mile from batch/trip acceptance through drop-off
- Self-employment tax is 15.3% on net profit — but you deduct 50% of it above the line
- State tax: None — Texas has no state income tax
- Set aside 22% of every Uber payment for tax
- Pay quarterly estimated taxes to avoid underpayment penalties — next deadline Sep 15, 2026
- Under OBBBA 2026: No Tax on Tips up to $25,000 — report tips separately on your return
Frequently Asked Questions
Do Uber drivers in Texas pay state income tax?
No. Texas has no state income tax. Uber drivers in Texas pay only federal income tax and self-employment tax (15.3% on net profit). This makes Texas significantly cheaper tax-wise than California or New York.
How much tax does an Uber driver pay in Texas in 2026?
On $35,000 net income: approximately $4,946 SE tax + $2,804 federal = $7,750 total before deductions. After mileage (10,000 miles = $7,250) the effective tax bill drops substantially.
What is the mileage deduction for Texas Uber drivers in 2026?
$0.725 per mile for all business miles — driving to the passenger, the trip itself, and deadhead miles. A driver covering 12,000 Texas miles deducts $8,700.
Are Texas toll road charges deductible for Uber drivers?
Yes. Toll charges on Texas roads (TxTag, TollTag, EZ TAG) paid during Uber trips are fully deductible as a business expense on Schedule C.
Do Texas Uber drivers pay quarterly estimated taxes?
Yes — federal only (IRS Form 1040-ES). Deadlines: Apr 15, Jun 16, Sep 15, Jan 15 2027. No state estimated tax is required in Texas.
About the Author
EB
Ethan Blake
Small Business Tax & Compliance Expert
Tax compliance specialist since 2017. Helped 5,000+ freelancers and independent contractors navigate IRS Schedule C deductions and reduce their tax bills.