Lyft driver tax calculator — how much to set aside
Lyft pays you as a contractor with nothing withheld. Enter a typical payout and see the share to move aside the day it hits your account.
What you get paid
Set aside
13% of every payment
That's $202 out of each week. Move it the day the money lands.
- Gross for the year
- $78,000
- Net profit after expenses
- $54,600
- Self-employment tax
- $7,715
- Federal income tax
- $2,780
- Total tax for the year
- $10,495
- Each quarterly payment
- $2,624
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Reading your Lyft numbers correctly
Lyft's annual summary separates gross ride receipts from the platform fees it kept. The gross figure is what gets reported, so deducting the Lyft commission, service fees and airport fees is what brings your reported income back down to what you were actually paid.
Vehicle costs are the other half. Standard mileage covers fuel, maintenance, insurance and depreciation in one per-mile rate, and for most rideshare drivers it beats itemising actual costs. Tolls, parking, water and mints for riders, and the business share of your phone sit on top.
Nothing is withheld, so self-employment tax of 15.3% on profit arrives all at once unless you reserve for it. Move the percentage below out of every payout and the quarterly payment funds itself.
Frequently asked questions
How much should a Lyft driver set aside for taxes?
Typically 20-30% of your payout, depending on how many miles you drive and your state. The calculator above uses your own numbers instead of a flat guess.
Does Lyft take out taxes?
No. Lyft drivers are independent contractors and receive a 1099-NEC or 1099-K with nothing withheld.
Can I deduct the Lyft commission?
Yes. Platform commission, service fees and airport fees are deductible business expenses, which matters because your 1099-K may report gross fares before those were taken out.
Mileage or actual expenses for Lyft?
Most drivers do better on standard mileage, especially with an older paid-off car. Actual costs can win with an expensive or newly bought vehicle — but once you choose actual costs with depreciation, switching back is restricted.
What if I drive for both Uber and Lyft?
Combine everything on one Schedule C as a single driving business, and track total business miles across both apps rather than per platform.
Estimates only, using projected 2026 federal figures. Not tax advice.
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