Taxes for Rideshare and Delivery Drivers in NYC

Which forms the apps send

Depending on the platform, you may get a 1099-K, a 1099-NEC, both, or neither. For 2026 a payment platform only has to send a 1099-K once your payments are over $20,000 and more than 200 transactions, and a 1099-NEC is required at $2,000 or more. Many apps send forms below those amounts anyway. Either way, all of your driving income is taxable, form or no form, and the gross amount on a 1099-K usually includes fees and commissions the app took, which you deduct.

Mileage rate or actual car costs

• Standard mileage: the IRS business rate for 2026 is 72.5 cents a mile for January 1 through June 30 and 76 cents a mile from July 1 through December 31, so keep your miles by date. Count the miles driving to pickups and between trips, not only the miles with a passenger.
• Actual expenses: gas, insurance, repairs, tires, car washes, lease payments or depreciation, multiplied by your business-use share. This can win for a newer or expensive car you drive mostly for work.
• The first-year choice matters: if you own the car and want the option of the mileage rate later, you generally have to use it in the first year the car is used for business.
• On top of either method: tolls, parking, the business share of your phone and plan, and fees the platform charged you.

TLC drivers

If you drive for hire in the city under a TLC license, your license and renewal costs, required drug tests and courses, and for-hire vehicle costs are generally business expenses. Keep the receipts; TLC costs are easy to forget at tax time.

Estimates and NYC business tax

Driving income carries about 15.3% self-employment tax plus federal, New York State and, if you live in the city, New York City income tax. Quarterly estimates are due April 15, June 15, September 15 and January 15. Most part-time drivers never reach the NYC Unincorporated Business Tax filing threshold of $95,000 in gross business income, but full-time drivers with high gross fares can, so we check.