Tax deductions for rideshare and delivery drivers

You are self-employed

When you drive for Uber, Lyft, DoorDash, Instacart or similar apps as an independent contractor, you generally report your income and your business costs as a self-employed person, and the net profit is what gets taxed. Deductions lower that profit, so keeping good records matters.

Vehicle costs: the biggest item for most drivers

You can deduct the cost of using your car for work with the standard mileage rate or with your actual expenses. The 2026 standard rate is 72.5 cents per mile until June 30 and 76 cents from July 1 (IRS). For a car you own, the IRS says you must choose the standard rate in the first year the car is available for your business; later you can switch to actual expenses (Publication 463). Which miles count as business miles, such as the drive to your first pickup, depends on the rules and your situation, so ask a tax professional.

Other costs drivers commonly ask about

• The business share of your phone and data plan.
• Tolls and parking during work.
• Insulated bags, phone mounts, dash cams and similar supplies.
• Car washes and cleaning supplies, if used for the work.
• Fees the platform takes from your payments.
• Business insurance or the business part of rideshare coverage.

Whether each item applies, and how much of it, depends on your case. Do not count the same cost twice: if you use the standard mileage rate, it already stands for gas, repairs, insurance and wear on the vehicle.

Keep records

The IRS says to keep complete records to back up what you report. For driving, write down the date, business purpose and miles of each trip as you go. The free mileage log does the math with the right rate for each date.

Next steps

• See if the job is worth your miles: real pay per hour calculator.
• Estimate what you owe: gig worker tax calculator.

Frequently asked questions