Rideshare and delivery drivers who work as independent contractors can generally deduct the ordinary and necessary costs of doing the job, and the largest of those is almost always the car. The catch is that you can deduct vehicle costs one way or the other, not both, and you need records to back up every number. This is a practical checklist of what to track so you don’t leave money on the table at tax time.
Key Takeaways
- Your vehicle is usually the biggest deduction: the standard mileage rate or actual expenses, never both
- Business parking and tolls are deductible separately with either method
- Supplies, the business share of your phone plan and some fees may also count
- Keep records as you go: a trip log, receipts and each platform’s earnings summary
- Gross pay isn’t profit: track what the car costs per mile to see what you really keep
This is general information, not tax advice. Rules depend on your situation, so confirm with a tax professional.
Deductions at a Glance
| Cost | Deductible? | What to track |
|---|---|---|
| Vehicle: standard mileage rate | Business miles × the IRS rate | Dated trip log with business miles |
| Vehicle: actual expenses | Business-use share of fuel, repairs, tires, insurance, registration, depreciation or lease | Every receipt, plus business vs. total miles |
| Parking and tolls | Yes, with either vehicle method | Receipts or statements |
| Phone and data plan | The business-use share | Bill and a reasonable estimate of business use |
| Supplies (insulated bags, phone mount, cleaning supplies) | Often, if used for the job | Receipts |
| Platform service fees and commissions | May be, if your reported income is before those fees | Platform statements |
| Tax software or preparation | May be | Receipts |
The Vehicle: Two Methods, Pick One
Standard mileage rate. Multiply your business miles by the IRS rate for the date you drove them. It’s the low-effort option. For 2026 the rate is 72.5 cents through June 30 and 76 cents from July 1 (see the 2026 IRS mileage rates). You do not also deduct fuel, repairs, insurance or depreciation.
Actual expenses. Deduct the business share of what the car really costs to run: fuel, maintenance and repairs, tires, insurance, registration and depreciation or lease payments. It takes more record-keeping and can win for older or costlier-to-run vehicles.
The first-year rule. For a car you own, you must choose the standard mileage rate in the first year the car is available for use in your business if you want that option. In later years you can choose either method. For a leased car, the standard rate must be used for the entire lease period, including renewals. Read our comparison of standard mileage rate vs. actual expenses before you commit.
Parking and Tolls: Don’t Forget Them
The IRS says business-use parking fees and tolls are separately deductible, whether you use the standard mileage rate or actual expenses. Airport parking, toll roads and garage fees for business trips add up over a year and are easy to lose if you don’t capture them when they happen.
Which Miles Count
Only business driving is deductible; personal trips are not. Where the line falls for gig work, such as miles while you wait for a request or drive between trips, depends on your facts, so ask a tax professional how to treat them, and log your miles consistently so you can apply whatever rule fits.
Records to Keep
The IRS requires you to substantiate vehicle expenses with adequate records or sufficient evidence to support your own statement, and a log, diary or notebook is acceptable. Keep:
- A mileage log, with the date, miles and purpose of each trip, kept as you go
- Receipts for fuel, repairs, parking, tolls and supplies
- Platform earnings summaries from Uber, Lyft, DoorDash, Instacart and others
- Your odometer readings at the start and end of the year
Common Mistakes
- Double counting. Claiming the standard mileage rate and fuel or repairs for the same car and year
- Reconstructing a log in April. Records made as you go are easier to defend
- Skipping parking and tolls because they feel small
- Mixing personal and business miles without separating them
- Treating earnings as profit. A good week of fares can still be a bad week once fuel, wear and fees come out
See Your Real Profit, Not Just Your Pay
Deductions lower your tax bill, but the number that matters first is what you actually keep. TORQ Track Driver compares your earnings with fuel, maintenance and depreciation to show profit per mile and per hour, breaks it down by platform, and turns your logged vehicle expenses into an IRS actual-expense estimate shown next to the standard mileage rate. Learn how to track rideshare and delivery earnings vs. expenses, see how your cost per mile is built, or try the cost per mile calculator. Note that TORQ Track doesn’t track your location automatically; you enter trips, shifts and odometer readings yourself, which you can do in seconds from your phone’s mileage tracker.
Sources
- IRS: Topic no. 510, Business use of car
- IRS: Publication 463, Travel, Gift, and Car Expenses
- IRS: Standard mileage rates
Frequently Asked Questions
What can rideshare and delivery drivers deduct?
Drivers who are self-employed can generally deduct ordinary and necessary business costs. The biggest is usually the vehicle, using either the standard mileage rate or actual expenses, plus business parking and tolls, and costs such as supplies and the business share of a phone plan. A tax professional can confirm what applies to you.
Can I deduct both the standard mileage rate and my gas?
No. If you use the standard mileage rate you don't also deduct the individual costs of running the car, such as fuel, repairs, insurance and depreciation. The IRS lists those under the actual expense method. Business parking and tolls are separately deductible with either method.
Should I use the standard mileage rate or actual expenses?
It depends on your vehicle and mileage. Compare both with your real numbers, and remember the first-year rule: for a car you own, you must choose the standard rate in the first year the car is available for business use to keep that option. See standard mileage rate vs. actual expenses.
What is the 2026 IRS mileage rate for drivers?
72.5 cents per business mile for January 1 to June 30, 2026 and 76 cents from July 1, 2026. See the 2026 IRS mileage rates.
What records do I need to keep as a gig driver?
Keep a trip or mileage log, receipts for parking, tolls and supplies, and the earnings summaries from each platform. The IRS requires adequate records or sufficient evidence to support your own statement, and a log, diary or notebook is acceptable.
Does TORQ Track file my taxes?
No. TORQ Track Driver turns your logged fuel, maintenance, insurance and other vehicle expenses into an IRS actual-expense estimate and shows it next to the standard mileage rate so you can plan. It's an estimate, not a filed return, so confirm the numbers with a tax professional.
