Because you work for yourself, you are responsible for both the ?employer? and ?employee? portions of the tax. For Tax Year 2022 (returns filed in 2023), the self-employment tax rate is 15.3 percent.

For Uber drivers in the United States, the self-employment tax rate in 2025 and 2026 remains 15.3% on your net earnings. This tax is composed of two parts: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional W-2 employees, where the employer pays half of these taxes, independent contractors (like Uber drivers) are responsible for both the employer and employee portions. However, you only pay this tax on your net profit, not your gross income. To reduce this tax liability, it is essential to track your business deductions, the most significant of which is the Standard Mileage Rate, which the IRS has set at 70 cents per mile for the 2025 tax year. Other deductible expenses include a portion of your phone bill, tolls, and parking. It is a "pro tip" to set aside roughly 25-30% of your gross earnings to cover both self-employment tax and federal/state income taxes, and to pay these through quarterly estimated tax payments to avoid underpayment penalties from the IRS.