Rideshare \u00b7 Taxes · 5 min read
What can delivery drivers deduct?
Every dollar you deduct is a dollar you don't pay tax on. Here's the plain list for food and grocery delivery drivers, starting with the biggest one.
Updated September 24, 2026
01
Mileage — the big one
For 2026 the IRS standard rate is 72.5¢ a mile. Count miles driven while working: to the pickup, to the customer, and between orders. Your drive from home to your first order is usually personal. Keep a log as you go.
02
Or actual car costs
Instead of the mileage rate you can deduct the business share of fuel, repairs, insurance, and depreciation. Most delivery drivers come out ahead with the mileage rate, and it's far simpler.
03
Phone and data
The business share of your phone bill and data plan. If you use your phone half the time for deliveries, deduct half.
04
Delivery gear
Insulated bags, coolers, phone mounts, chargers and anything else you buy to do the job.
05
Parking and tolls
Parking and tolls paid while working are deductible on top of the mileage rate. Parking tickets are not.
06
FAQ
Can I deduct gas if I use the mileage rate?
No. Fuel is already built into the mileage rate, so you pick one method or the other.
Do I need receipts?
Keep a mileage log and receipts for other costs. A log written as you drive holds up far better than one pieced together later.
Related reading and calculators
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