If Uber is your side hustle, you'll pay 15.3% in FICA taxes on your income from the platform, and only 7.65% on your day job earnings. Since you’re self-employed, you'll be responsible for paying both the employer portion and the employee portion, which brings your total up to 15.3%. Together, that adds up to 7.65% in FICA taxes. ![]() The Medicare tax rate is 1.45%, while Social Security is 6.2%. Understanding self-employment taxes for rideshare driversĪs an independent contractor, you're in charge of paying FICA taxes on your self-employment income.įICA stands for Federal insurance Contributions Act, and includes both Medicare and Social Security taxes. That means you technically run your own business, so Uber won't withhold taxes for you the way most traditional employers do. As an Uber driver, you're classified by the IRS as an independent contractor, rather than an employee. The second type of taxes you're responsible for is self-employment taxes. The exact percentage you'll pay depends on your state and your tax bracket, which is usually based on how much you earned over the calendar year. ![]() ![]() Your federal tax rate can vary from 10% to 37%, while your state rate can be anywhere from 0% to 10.75%. The first? Your federal and state income taxes. As self-employed workers, Uber drivers are responsible for two main types of taxes. What taxes do you have to pay as a rideshare driver?įirst things first - let's talk about what you're on the hook for as a rideshare driver.
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