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State tax guides for delivery and rideshare drivers
Your federal bill is the same in every state, but the state layer is not: some states have no income tax, some tax tips that the federal return does not, and some add city taxes that arrive on a different calendar. Each guide below is written from the state revenue department's own materials and shows what changes for a driver.
How these guides work
Every state page follows the same checks, but the content is different because the states are different. Each one covers the state's 2026 income tax structure (or the latest official figures when 2026 ones are not yet posted), the estimated tax rules for self-employed people, local taxes that reach gig income, state rules on 1099 reporting, and whether the state follows the federal tips deduction. Each page also has a worked example produced by the same engine as our 1099 gig tax calculator, with the state tax calculated from the state's own published rules instead of a rough rate.
The status of the federal tips deduction is the item that changes fastest, so the table says where the state is today and the guide names the source. The federal deduction is described in our tips deduction guide, and you can price it with the tips calculator.
The 12 states at a glance
| State | Income tax | Federal tips deduction followed? |
|---|---|---|
| California | Yes, graduated 1% to 12.3% | Does not follow. Does not conform (FTB) |
| Texas | No personal income tax | Not applicable. No state income tax |
| Florida | No personal income tax | Not applicable. No state income tax |
| New York | Yes, graduated 3.9% to 10.9% (2026) | Follows. Follows from 2026 (not 2025) |
| Illinois | Yes, flat 4.95% | Does not follow. No Illinois tips deduction found |
| Pennsylvania | Yes, flat 3.07% | Does not follow. No federal deductions carry over |
| Ohio | Yes, but business income is largely exempt | Does not follow. Not allowed on 2025 return |
| Georgia | Yes, flat 4.99% (2026) | Partly. Partial: up to $1,750 of cash tips |
| North Carolina | Yes, flat 3.99% (2026) | Does not follow. No for 2025 (NCDOR) |
| Arizona | Yes, flat 2.5% | Follows. Follows (2025 and later) |
| New Jersey | Yes, graduated 1.4% to 10.75% | Does not follow. Does not follow, 2025 to 2028 (Division of Taxation) |
| Washington | No personal income tax in 2026 (9.9% over $1M from 2028) | Not applicable. No state income tax |
"Not applicable" means the state has no personal income tax, so there is nothing to deduct tips from. For the other states, conformity is decided by state law and can change in a legislative session; the individual pages list the statute, bulletin, or form that shows the current answer.
California taxes for delivery and rideshare drivers
Graduated rates, the 30/40/0/30 estimated payment schedule, no state tips deduction, the $600 app-based driver 1099-K rule, and Los Angeles business tax.
TXTexas taxes for delivery and rideshare drivers
No state income tax and no state estimated payments, why sole proprietors are outside the franchise tax, and what still applies federally.
FLFlorida taxes for delivery and rideshare drivers
No personal income tax by constitution, the statute that classifies rideshare drivers as contractors, and the federal bill that remains.
NYNew York taxes for delivery and rideshare drivers
The 2026 rate cut, the new tips subtraction, NYC and Yonkers tax, the MCTMT, and the NYC unincorporated business tax gross-income test.
ILIllinois taxes for delivery and rideshare drivers
A flat 4.95%, no standard deduction or tips deduction, the $1,000 estimated tax trigger, and how payers report 1099-K income to the state.
PAPennsylvania taxes for delivery and rideshare drivers
Flat 3.07% with no standard or half-SE deduction, local earned income tax, Philadelphia net profits and BIRT, and the $14,000 estimate trigger.
OHOhio taxes for delivery and rideshare drivers
The business income deduction, the school district tax, and the municipal net profit tax filings that matter more than the state return.
GAGeorgia taxes for delivery and rideshare drivers
A flat 4.99% for 2026, a $15,000 standard deduction, and Georgia’s own $1,750 cash-tips exclusion in place of the federal deduction.
NCNorth Carolina taxes for delivery and rideshare drivers
A flat 3.99%, the $12,750 standard deduction, a $1,000 estimated tax trigger, and the Department of Revenue’s official no on the federal tips deduction.
AZArizona taxes for delivery and rideshare drivers
A flat 2.5%, the state tips subtraction in A.R.S. 43-1022, and an estimated tax rule that applies only above $75,000 of gross income.
NJNew Jersey taxes for delivery and rideshare drivers
Why New Jersey taxes your Schedule C profit instead of federal AGI: no tips deduction, no half-SE deduction, the $400 estimate rule, and losses that cannot offset wages.
WAWashington taxes for delivery and rideshare drivers
No 2026 income tax, but public utility tax on rideshare gross income at 0.642% or 1.926%, the $12,000 license and $24,000 exemption tests, and the 2028 tax over $1 million.
If your state is not listed
These twelve pages are written by hand. For any other state, the 1099 gig tax calculator has a state selector that applies an approximate effective rate, which you can overwrite with your own, and it shows a warning for states that we have confirmed do not follow the tips deduction. Always check your state revenue department's website for the current rules, because state tax law changes every year.
What every driver should check, wherever they live
- Estimated payments. The federal due dates are April 15, June 15, September 15, and January 15. Several states use the same dates but not the same triggers or percentages. See the quarterly payment guide.
- 1099 forms. The federal 1099-K threshold is $20,000 and 200 transactions and the 1099-NEC threshold is $2,000 for 2026, but a few states ask payers to report at lower amounts. Income is taxable whether or not a form arrives; see the 1099 thresholds guide.
- Local taxes. City income taxes, municipal net profit taxes, and business license taxes are filed separately from the state return. They are the usual cause of an unexpected bill.
General information for tax year 2026, not tax advice. Spot an error? Tell us on the corrections page.