Uber Driver Profit Calculator

How the Uber driver calculator works

Enter a typical week: total earnings including tips, the hours you were online and the miles you drove with the app on. The calculator subtracts gas and car upkeep, then estimates self-employment tax and federal income tax on what remains, so you see profit after costs and take-home per hour.

What rideshare drivers often overlook

• Online time is working time. Waiting for a request, queueing and repositioning all use your hours and your gas. Count every hour you are online.
• Miles without a passenger. Driving to a pickup and between rides is often a big share of total miles, which raises both your costs and your possible deduction.
• How your earnings are reported. Check whether your annual tax summary shows earnings before or after the platform’s service fee. Fees are only a deductible expense if you were taxed on the amount before they were taken out.
• Insurance and vehicle costs. If you use the standard mileage rate, these are already built into the rate. If you track actual expenses instead, keep every receipt.

The mileage deduction in 2026

Most drivers use the IRS standard mileage rate rather than tracking every car expense. For 2026 the IRS first set the business rate at 72.5 cents per mile, then revised it to 76 cents per mile for miles driven from July 1, 2026. The rate covers gas, wear, insurance and depreciation (the IRS treats 35 cents of each mile in 2026 as depreciation), so you generally cannot also deduct those costs for the same vehicle.

• You need a record of each business trip: date, miles and purpose. A mileage app or a simple log both work.
• If you own the car, you generally must choose the standard rate in the first year you use it for business to keep that option later.
• Commuting miles are not deductible. The rules for the drive to your first stop of the day are nuanced, so keep records and ask a tax professional about your case.

The standard rate is a tax number, not your real cost. That is why this calculator shows two views: your cash profit using your real gas and car costs, and your tax using the IRS mileage deduction.

How taxes work for Uber and other rideshare drivers

Uber and other rideshare drivers are treated as independent contractors, so nothing is withheld from your payouts. You are responsible for two federal taxes on your net profit (income minus allowable business expenses):

• Self-employment tax of 15.3%, made up of 12.4% Social Security and 2.9% Medicare, applied to 92.35% of your net profit. The Social Security part stops at $184,500 of earnings in 2026. Half of this tax is deductible when working out income tax.
• Federal income tax at your bracket rates, after the standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household for 2026) and, for most people at these income levels, the 20% qualified business income (QBI) deduction.

Because no tax is taken out for you, the IRS expects estimated payments during the year, due April 15, June 15, September 15 and January 15 for the 2026 tax year. A good habit is to move your estimated set-aside percentage into a separate account every time you are paid.

The qualified tips deduction

For tax years 2025 through 2028, eligible workers can deduct up to $25,000 of qualified tips from taxable income. The deduction phases out at higher incomes, applies only if your occupation customarily receives tips under Treasury rules, and for the self-employed it cannot exceed the profit of the business that earned the tips. It lowers income tax only. It does not reduce self-employment tax. This calculator applies the deduction to the tips you enter, so check eligibility for your situation before relying on it.

Worked example

Suppose a driver earns $900 a week including $140 in tips, online for 36 hours and driving 720 miles. That is $25.00 gross per hour. Gas comes to about $74 and other car costs to about $86, so cash profit is $19.98 per hour. The IRS mileage deduction is roughly $535 a week, which reduces estimated tax to about $49 a week (about 14% of profit). Take-home lands near $18.63 per hour. Earning $1.25 per mile against a cost of $0.22 per mile is the figure to watch when you choose which trips to accept.

Which trips make sense

Revenue per mile matters more than revenue per trip. Compare what a ride pays to the miles it needs, including the empty drive to the pickup, and keep it above your cost per mile as shown in the results. Short rides in slow traffic can look fine on the screen and still produce a poor hourly figure.

Frequently asked questions

Sources

• IRS: 2026 business standard mileage rate is 72.5 cents per mile (Dec. 29, 2025)
• IFEBP: IRS raises the 2026 business mileage rate to 76 cents from July 1, 2026
• IRS: 2026 tax inflation adjustments (Rev. Proc. 2025-32)
• IRS: Self-employment tax (Social Security and Medicare)
• IRS Publication 463: Travel, gift, and car expenses
• IRS Publication 505: Tax withholding and estimated tax
• IRS Publication 15 (2026): qualified tips and Social Security wage base

Estimates only, not tax advice. See our disclaimer.

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