Tax Deductions for Rideshare & Delivery Drivers (2025)

Driving for Uber, Lyft, DoorDash, or Instacart makes you a 1099 contractor, and your car is the heart of the business. Mileage alone is usually the deduction that matters most, and most drivers leave money on the table by not logging every business mile. Here is what gig drivers can write off in 2025.

Capture every rideshare & delivery driver write-off

Every deduction below only counts if you can prove it. NeoReceipt scans each receipt, sorts it into the right Schedule C category, and logs your mileage, so nothing is missed at tax time.

Key takeaways

  • Rideshare & Delivery Drivers file as 1099 / self-employed, so business expenses are deductible on Schedule C.
  • Deductions cut both income tax and the 15.3% self-employment tax.
  • The biggest write-offs for rideshare and delivery drivers are listed below, with what each covers.
  • You need receipts and a mileage log to claim them.

Tax write-offs for rideshare and delivery drivers

Here are the deductions rideshare and delivery drivers most commonly claim. Each one lowers your net profit, and therefore your tax:

DeductionWhat it covers
MileageThe standard mileage rate (70 cents per mile for 2025) covers gas, wear, and depreciation. Track every mile while online or driving to pick-ups.
Actual car expenses (alternative)Instead of mileage, you can deduct the business share of gas, insurance, repairs, and depreciation. Pick one method per vehicle.
Phone and data planThe business-use percentage of the phone and plan you use to run the apps.
Phone mounts and chargersMounts, chargers, and cables used for driving.
Tolls and parkingTolls and parking fees incurred while working (not covered by the mileage rate).
Car cleaning and suppliesCar washes, detailing, and supplies to keep the vehicle rider-ready.
Passenger amenitiesWater, snacks, gum, and phone chargers offered to riders.
Hot bags and delivery gearInsulated bags, drink carriers, and equipment for delivery work.
Platform and service feesCommissions and service fees the apps take from your earnings.
Health insurance and retirementSelf-employed health insurance premiums and SEP-IRA or Solo 401(k) contributions.

How these deductions lower your tax

As a rideshare & delivery driver, your tax is based on net profit, which is your income minus these business expenses. Because both self-employment tax and income tax are calculated on that profit, every dollar you deduct is taxed at neither rate, saving most contractors roughly 25 to 40 cents on the dollar. The catch is documentation: you can only deduct what you can prove, so capturing receipts and miles through the year is what turns this list into real savings.

See what these deductions save you with our free calculators, then let NeoReceipt make sure you capture every one.

Frequently asked questions

Should I use the standard mileage rate or actual expenses?+

Most gig drivers come out ahead with the standard mileage rate (70 cents per mile for 2025) because it is simple and generous, but if your car is expensive to run, actual expenses may be larger. You must choose a method in the first year you use the car for business, so estimate both.

What miles can I deduct as a rideshare driver?+

Miles while you have a passenger or delivery, miles driving to pick up a rider or order, and miles spent online waiting for requests are generally deductible. Commuting from home before you go online and personal trips are not. Keep a contemporaneous mileage log.

Do I owe taxes if I drove part-time?+

Yes. Once your net self-employment profit reaches $400 you owe self-employment tax and must report the income, even part-time and even if a platform did not send you a 1099.

Can I deduct gas if I take the mileage rate?+

No. The standard mileage rate already includes gas, maintenance, and depreciation, so you cannot deduct those separately. Tolls and parking are the exception and can be added on top.

Related: Full 1099 Deductions List · 1099 Tax Calculator · How to File

Trusted by rideshare and delivery drivers

Every deduction, captured

See how rideshare and delivery drivers use NeoReceipt to claim every write-off before they file.

NeoReceipt saved me during tax season. As a freelance graphic designer, I had receipts scattered across emails and folders. In just three months, NeoReceipt automatically categorized over 400 receipts and helped me identify nearly $2,300 in deductible expenses I would have otherwise missed.
SMSarah MitchellFreelance Graphic Designer
I drive for Uber and DoorDash full-time, and tracking gas and maintenance receipts was a nightmare. After switching to NeoReceipt, I reduced my bookkeeping time from 4 hours a week to less than 20 minutes and had every expense ready for my accountant.
JRJames RodriguezRideshare Driver
As a real estate agent, I'm constantly on the road and collecting receipts from multiple vendors. NeoReceipt helped me recover over $4,100 in business deductions last year by ensuring nothing slipped through the cracks.
JPJessica ParkerReal Estate Agent

Reviews from early NeoReceipt users. Individual results vary.