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Business Tax5 min readMar 17, 2026
Tax Deductions for Uber, Lyft, and Delivery Drivers
Gig economy drivers have significant tax obligations AND deductions. Here's how to minimize your taxes while maximizing your take-home pay.
Tax Guide for Rideshare and Delivery Drivers
Your Tax Situation
- You're an independent contractor (1099 worker)
- Self-employment tax: 15.3% on net earnings
- Federal and state income tax also applies
- Quarterly estimated payments required
Your Most Important Deduction: The Vehicle
Standard Mileage Rate Method
- 67 cents per mile for business miles (2025)
- Track every mile driven for the platform
- Also deduct: parking fees, tolls
Actual Expense Method
- Track all actual vehicle costs
- Multiply by business use percentage
- Often better for newer, more expensive vehicles
Most drivers use the standard mileage rate for simplicity.
Other Deductions
- Phone (business use %) — this is significant for gig workers
- Phone mount, charger, dash cam
- Water/snacks for passengers (100% for rideshare)
- Car washes and cleaning supplies
- Platform fees (already deducted on your 1099)
- Health insurance premiums
Form 1099-K
You'll receive this from Uber, Lyft, DoorDash, etc. It shows gross earnings before platform fees.
Deducting Platform Fees
Platform fees ARE deductible as a business expense even though they don't appear on your 1099.
Drive for Uber or DoorDash? Make sure you're capturing every deduction.