Rideshare Mileage Deduction: Track It Right

Why mileage matters so much for rideshare drivers

When you drive for Uber, Lyft, DoorDash, or any app, you are self-employed. Your car is your main business expense, and the IRS lets you write it off one of two ways: the standard mileage rate or your actual vehicle costs. Most drivers come out ahead with the standard mileage method because it is simple, and the per-mile rate already bundles gas, oil, repairs, insurance, and depreciation into one number.

The math is straightforward. Drive 18,000 business miles in 2026 at 72.5 cents and that is a $13,050 deduction. Against self-employment and income tax, that can be a few thousand dollars you keep instead of send to the IRS. Miles you never wrote down are miles you cannot claim, so the log is the whole game.

The 2026 and 2025 rates

• 2026: 72.5 cents per business mile. Use this for miles you drive this year.
• 2025: 70 cents per business mile. Use this if you are still finishing a 2025 return on extension (due October 15, 2026).

Which miles you can actually deduct

This is where most drivers leave money on the table. Uber and Lyft only report your on-trip miles on your year-end tax summary, the miles with a passenger in the car. The IRS lets you deduct far more than that, as long as the app is on and you are working:

• Miles driving to a rider after you accept the request.
• Miles spent cruising or waiting for the next ride while you are online.
• Miles between a drop-off and your next pickup.
• Trips for gas, a car wash, or maintenance tied to the business.

What you cannot deduct is your commute. The drive from home before you go online, and the drive home after you log off, count as personal miles. The simplest fix is to start your mileage app the moment you go online and stop it when you log off for the day.

How to keep a log the IRS will accept

The IRS expects a contemporaneous record, meaning you log miles as you go rather than guessing in April. A solid log shows the date, the miles driven, and the business purpose. You have three easy options:

• A mileage tracking app that runs in the background (most drivers use one).
• Your Uber or Lyft yearly summary as a starting point, then add the off-trip miles it leaves out.
• A simple notebook or spreadsheet with your odometer reading at the start and end of each shift.

One rule worth knowing: if you want the freedom to switch methods later, choose the standard mileage rate in the first year you use the car for rideshare. If you start with actual expenses and claim depreciation, you can be locked out of the standard rate for that vehicle.

Do not forget quarterly taxes

Because no one withholds tax from your rideshare pay, you are expected to pay estimated taxes four times a year. The next deadline is the second-quarter payment due Monday, June 15, 2026, followed by the third quarter on September 15, 2026. Your mileage deduction lowers the income those payments are based on, so a clean log helps you avoid overpaying now and avoid a penalty later.

How Zero Fuss Taxes helps

You bring your mileage total and your 1099s. We guide your intake, organize everything, flag the off-trip miles drivers usually miss, and an experienced, IRS-registered preparer completes and reviews your return. You see the numbers and approve before anything is filed, with clear, upfront pricing and a real person to call. We never base our fee on the size of your refund.

Common mistakes to avoid

• Only deducting the on-trip miles Uber or Lyft reports.
• Reconstructing your mileage from memory at tax time.
• Deducting your commute or fully personal trips.
• Claiming both the standard mileage rate and gas and repairs for the same miles.
• Forgetting quarterly estimated payments and getting hit with a penalty.

FAQ

General information, not tax advice for your specific situation. Rules can change — a human preparer reviews your facts before any return is filed.