Uber operates in Auckland, Wellington, Christchurch, Hamilton, Tauranga and other New Zealand cities and towns, including Queenstown, Dunedin, Palmerston North, Napier and New Plymouth.
Uber drivers' gross fares are reduced by Uber's service fee, vehicle costs, fuel, maintenance, GST if registered, and income tax, so take-home pay is lower than the gross fare total. What you keep depends on your fares, the service fee and your vehicle costs.
How Uber Works in NZ
Uber operates as a marketplace connecting passengers with driver-partners. Uber treats drivers as self-employed, but in November 2025 the Supreme Court found that four Uber drivers were employees, so your status depends on the real nature of your relationship with Uber, not the label. If you are treated as self-employed, this means:
- No PAYE deductions — you’re responsible for tax
- No employer KiwiSaver contribution
- No annual leave or sick leave
- ACC self-employed levy applies
Uber takes a service fee from each fare.
Earnings: What the Numbers Look Like
Gross Earnings from Uber
Gross fares depend on when, where and how long you drive.
IRD treats the full gross fare as your income; the marketplace’s service fee or commission is a claimable expense.
The Cost Deductions
Costs to budget for include fuel, vehicle wear and depreciation, maintenance and insurance. Uber requires at least third party property damage car insurance, and a Certificate of Fitness for the vehicle.
Net Earnings After Costs
IRD says you include the gross fares you earn in your income tax return and can claim only expenses directly related to providing the ride-sharing service. Your profit is therefore your gross fares less the allowable expenses, and income tax is charged on that profit.
Vehicle Requirements (NZ 2026)
To drive for Uber in NZ:
- Vehicle 15 years old or less, measured by year of manufacture (other Uber vehicle options have their own limits)
- Valid Certificate of Fitness (CoF) for the vehicle
- Current registration
- Passenger (P) endorsement on your driver licence — required for any paid passenger service (taxi, shuttle, or app-based rideshare) in NZ, with a Fit and Proper Person background check covering criminal history, traffic offences, and medical health
- Clear a background check
- Minimum 2 years holding a full (class 1) NZ car licence before you can apply for the P endorsement
The P endorsement application goes through NZTA (Waka Kotahi). There is an application fee, and NZTA says a complete application is processed within 20 working days.
Tax and GST
Income Tax
Fares, tips and bonuses from Uber are taxable income. You need an IRD number, and your gross fares go in your income tax return. Tax is worked out on your gross fares less the expenses you can claim, and the result is added to any other income you have. File an IR3 at year end.
You can deduct expenses directly related to driving: the income-earning share of costs such as fuel, vehicle depreciation, parking and a phone, plus the marketplace’s service fee or commission.
GST
If your turnover from all taxable activities (including your gross fares) is at least $60,000 in any 12-month period, or you expect it to be, GST registration is compulsory.
Since 1 April 2024, online marketplaces such as Uber collect GST on ride-sharing fares and pass 8.5% on to drivers who are not GST-registered. If you do register for GST, the rate is 15% and you can claim GST back on business expenses, including a share of vehicle running costs.
ACC for Uber Drivers
As a self-employed person, you pay:
- ACC earner levy: 1.75% on income up to $156,641
- ACC Work levy: A separate levy whose rate differs for every business, based on the risk of injury at work, claims history and income. ACC sets the rate by business classification, and its levy estimator gives an idea of the amount.
Contact ACC directly to confirm your levy rate. ACC sends your levy invoice by post or email once you have filed a tax return.
Is Uber Driving Worth It in NZ?
| Scenario | What to weigh |
|---|---|
| Side income (10–20 hrs/week) | Net pay depends on fares, the service fee and your vehicle costs |
| Full-time income | Vehicle depreciation, fuel and time without fares all reduce what you keep |
| If you already drive a lot | Only the income-earning share of vehicle costs is deductible |
| New vehicle for Uber | Loan repayments and depreciation add to your costs |
Alternatives to Consider
- Food delivery (Uber Eats / Delivereasy) — bike delivery has lower vehicle costs
- Freelancing NZ — if you have professional skills, higher effective hourly rate
- Trade Me selling — lower ongoing costs than vehicle-dependent gig work