Mileage is almost always the largest deduction a rideshare driver has — and the easiest one to under-claim.
| Situation | Deductible? |
|---|---|
| Driving with a passenger | Yes |
| Driving to pick up a passenger | Yes |
| Driving with the app on, waiting for a request | Generally yes |
| Repositioning to a busier area with the app on | Generally yes |
| Driving home after switching the app off | No |
| Personal errands | No |
This is where most drivers lose money. Uber and Lyft report only a portion of your miles on their annual summary — typically the on-trip miles. Miles spent driving to pickups and waiting online are usually deductible too, but only if you logged them yourself.
You can deduct the standard rate per mile, or your actual vehicle costs (gas, insurance, repairs, depreciation) multiplied by your business-use percentage — not both. Most rideshare drivers with high mileage and an ordinary car come out ahead with the standard rate, and it needs far less paperwork. If you choose actual expenses in the first year you use the car for business, that choice can restrict what you may use in later years, so it is worth asking a tax professional before switching.
Track every deductible mile automatically — get MilesProLogs pickup, waiting and repositioning miles the platforms don't report · free to start
Usually not. Platform summaries generally cover on-trip miles. Miles driven to a pickup, or online while waiting for a request, are often deductible as well — but you must have your own record of them.
20,000 × $0.725 = $14,500 deducted from your taxable income. What that saves in actual tax depends on your bracket and self-employment tax.
No. The standard mileage rate already covers fuel, maintenance, insurance and depreciation. You choose either the standard rate or actual expenses, not both. Tolls and parking are deductible separately either way.
Yes. There is no exemption for full-time drivers — the IRS still expects a record showing date, mileage, destination and business purpose for each trip.
Source: IRS standard mileage rates and IRS Publication 463.
Estimates and general information only — not tax advice. Whether specific miles or expenses are deductible depends on your circumstances; verify with the IRS or a qualified tax professional before filing.