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No Tax on Tips for Uber and Lyft Drivers (2026)

Tax year 2026 · Last updated · Maintained by the WattFlow team

Yes. Uber and Lyft Drivers are on the IRS tipped jobs list (code 802), so you can deduct up to $25,000 of tips from federal income tax for 2026. Rider tips count, but only up to your profit after car expenses.

Tips calculator for uber and lyft drivers

Private: runs in your browser
Form 1040, line 11. Include your overtime and tips.
Must be on the IRS tipped jobs list.
Gig work or 1099 tips? DoorDash, Uber, self-employed
Schedule C net profit. You can’t deduct more than this.
More options Tax year, itemizing, special cases
Leave blank if you take the standard deduction.
Optional. 000 means the job doesn’t qualify.
Only if you report extra tips yourself.

Estimate of federal income tax only. Not tax advice.

Example: rideshare driver

What rideshare drivers should know

Your IRS code

802 Taxi and rideshare drivers and chauffeurs. Not your exact job? See the full list of 71 tipped jobs.

Uber and Lyft Drivers: FAQ

Do Uber drivers get no tax on tips?

Yes. Taxi and rideshare drivers are code 802 on the IRS list. Your deduction is capped at your net profit.

Do I still pay self-employment tax?

Yes. The deduction only lowers federal income tax.

I drive for Uber and Lyft. Do I add them up?

Yes, add the tips. If they’re separate businesses, the profit limit applies to each; see the Schedule 1-A instructions.

How much can rideshare drivers deduct?

Up to $25,000 of qualified tips per tax return, for 2025 through 2028. It shrinks by $100 for each full $1,000 of income over $150,000 ($300,000 joint).

Do I still pay Social Security and Medicare on tips?

Yes. The deduction only lowers federal income tax. Payroll or self-employment tax and state tax don’t change.