If you drive for DoorDash, Uber Eats, Amazon Flex, Instacart or any other delivery app, your miles are usually your biggest tax deduction. In 2026 the IRS changed its rate in the middle of the year, so the math is a little different from previous years. Here is exactly how much you can deduct, what counts, and the records you need to keep.
Key numbers for tax year 2026
- 72.5 cents per business mile from January 1 to June 30, 2026
- 76 cents per business mile from July 1 to December 31, 2026
- Parking fees and tolls for business trips are deductible on top of the rate
What the IRS mileage rate is
The standard mileage rate is a flat amount per mile that the IRS lets self-employed people deduct instead of adding up their real car costs. It is meant to cover gas, oil, maintenance, tires, insurance, registration and the value your car loses as you drive it.
As a delivery driver you are an independent contractor, so you report your income and expenses on Schedule C. Your mileage deduction lowers your profit, which lowers both your income tax and your self-employment tax.
The 2026 rates: a mid-year change
The IRS first set the 2026 business rate at 72.5 cents per mile, 2.5 cents more than in 2025. In July 2026 it raised the rate to 76 cents per mile for miles driven on or after July 1, 2026, because fuel prices went up.
| Miles driven | Business rate | Source |
|---|---|---|
| Jan 1 – Jun 30, 2026 | 72.5¢ per mile | IRS Notice 2026-10 |
| Jul 1 – Dec 31, 2026 | 76¢ per mile | IRS Announcement 2026-11 |
This means you need to know how many business miles you drove in each half of the year. A mileage log with dates makes this easy. The free Driver Helper USA app keeps one for you.
How much can you deduct? Worked examples
Multiply your business miles in each period by the rate for that period, then add the two amounts.
Example 1: full-time driver
Maria drives 9,000 business miles from January to June and 9,000 from July to December.
- 9,000 × $0.725 = $6,525
- 9,000 × $0.76 = $6,840
- Total deduction: $13,365
Because the deduction also reduces self-employment tax (15.3% on 92.35% of profit), it saves Maria about $1,890 in self-employment tax alone, before counting income tax. In a 12% income tax bracket, the income tax savings add roughly another $1,500.
Example 2: part-time driver who started in September
James started delivering in September and drove 4,200 business miles by December 31. All of them fall after July 1.
- 4,200 × $0.76 = $3,192
You can check your own numbers with our free mileage deduction calculator.
Which miles count as business miles
Business miles are the miles you drive to do the work. For delivery drivers this usually includes:
- Driving to a restaurant, store or warehouse to pick up an order
- Driving from the pickup to the customer
- Driving between orders while you are working, for example to a busier zone
- Trips to buy supplies for the job, such as insulated bags
Personal trips do not count, even if the app is on. The drive from home to your first pickup and back home at the end of the day is a gray area that depends on your situation, so ask a tax professional if those miles are a big part of your total.
Delivery apps often count only the miles you drive while an order is active. Your own log usually shows more business miles than the app’s tax summary, and it is your log that matters.
What you cannot deduct when you use the standard rate
The rate already includes your car’s operating costs. If you use it, you cannot also deduct:
- Gas and oil
- Repairs, maintenance and tires
- Car insurance
- Registration and depreciation
You can still deduct, in addition to the rate, the business share of parking fees and tolls, and, if you are self-employed, the business share of interest on your car loan.
Standard rate or actual expenses?
Instead of the standard rate, you can deduct the business share of your real car costs. For most delivery drivers who drive a fuel-efficient car many miles, the standard rate gives the bigger deduction and much less paperwork. Actual expenses can win with an expensive or inefficient vehicle.
One rule matters: if you own your car and want to use the standard rate, you must choose it in the first year you use the car for business. If you lease, you must use it for the whole lease. We compare both methods in detail in a separate guide.
The records the IRS expects
The IRS asks for records made at or near the time of the trip. For each workday, keep:
- The date
- Business miles driven (or odometer readings at the start and end)
- Where you went and the business purpose, for example “DoorDash deliveries, Austin”
Also note your car’s total miles for the year (odometer on January 1 and December 31): Schedule C asks for business, commuting and other miles. Keep receipts for parking and tolls. A notebook works, and so does a mileage app, as long as it records dates.
Where the deduction goes on your tax return
The mileage deduction goes on Schedule C (Form 1040), line 9, “Car and truck expenses”. You also answer the questions about your vehicle in Part IV of Schedule C, or on Form 4562 in some cases. Your profit from Schedule C then flows to Schedule SE for self-employment tax.
Frequently asked questions
Can I use the 76-cent rate for all my 2026 miles?
No. Miles driven from January 1 to June 30, 2026 use 72.5 cents. Only miles driven on or after July 1, 2026 use 76 cents.
Do I need receipts for gas if I use the standard rate?
No. Gas is included in the rate. What you need is a mileage log. Keep receipts for parking and tolls, which you deduct separately.
I forgot to log my miles. What can I do?
Rebuild the log as accurately as you can from the platforms’ trip history, bank statements and your calendar, then keep a proper log from now on. Estimates without support are risky in an audit.
Does the mileage deduction lower self-employment tax?
Yes. It reduces your Schedule C profit, and self-employment tax is calculated on that profit.