How to Track Mileage: A Complete Guide for Gig and Delivery Drivers

The IRS lets you deduct $0.70 per business mile driven in 2025. For a driver logging 20,000 miles a year, that's $14,500 off your taxable income. Most drivers never collect it — not because they don't qualify, but because their records don't hold up to IRS scrutiny.

This guide covers exactly what the IRS requires, the difference between manual and GPS tracking, and which method saves you the most money.

What the IRS Actually Requires

Per IRS Publication 463, a valid mileage log must include all four of these elements for every trip:

1. Date of the trip
2. Total miles driven for that trip
3. Business purpose (e.g., "DoorDash delivery shift")
4. Start and end locations (general area is acceptable — you don't need exact addresses)

Odometer readings at the start and end of the year are also strongly recommended. Without these, calculating your total business-use percentage becomes difficult if audited.

Standard Mileage vs Actual Expense Method

You have two options for deducting vehicle costs. Choose once per vehicle — you generally can't switch methods mid-ownership.

The standard mileage method wins for most gig drivers because it's simpler and the $0.70 rate is generous. The actual expense method can pay off if you drive a vehicle costing more than $0.725/mile to operate — newer cars with high insurance, for example.

Manual Logbooks vs GPS Tracking Apps

Both methods are IRS-acceptable, but they differ significantly in reliability and effort:

Manual Logbooks

• Pros: Free, works without a smartphone, fully customizable
• Cons: Easy to forget, error-prone, time-consuming, harder to reconstruct for audits
• Best for: Drivers with very consistent routes or part-time gig work

GPS Tracking Apps

• Pros: Automatic logging, IRS-ready reports, can classify trips by platform, backup to cloud
• Cons: Battery drain, some cost money, require phone data
• Best for: Full-time or multi-platform drivers with irregular routes

Best Free Mileage Tracking Apps for Gig Drivers

How Long to Keep Records

Keep mileage records for at least 3 years after filing the return they support. If you underreport income by more than 25%, the IRS has 6 years to audit. Store records in cloud backup (Google Drive, iCloud) not just on your phone — if your phone dies before tax season, you lose everything.

Common Mileage Tracking Mistakes

• Not logging commutes to your first pickup: Miles from home to your first delivery pickup are generally not deductible. Miles between deliveries are.
• Mixing personal and business miles: Keep a dedicated business mileage record. Using the same car for personal trips doesn't eliminate business deductions — just keep them separate.
• Waiting until tax season: Reconstructing a year of trips from memory is inaccurate and a red flag if audited. Log in real time.

What 20,000 Miles Is Worth at Tax Time

To make the math concrete: at $0.725/mile, 20,000 business miles = $14,500 in deductions. If you're in the 22% tax bracket, that's roughly $3,080 back in your pocket. At 24%, it's $3,360. That's real money that most drivers leave unclaimed because their records don't qualify.