Gig Worker Mileage & Tax Deductions: The Complete Guide

Why mileage is your biggest deduction

Mileage is typically the largest write-off available to gig workers because you drive constantly — and at 72.5 cents per mile for January–June and 76 cents from July 1, 2026, the miles pile into real money. A driver who logs 20,000 business miles split evenly across the year deducts $14,850 ((10,000 × $0.725) + (10,000 × $0.76)) from taxable income. At a 22% federal bracket that is about $3,267 less federal income tax, and it also lowers the 15.3% self-employment tax.

The catch is documentation. The IRS requires a contemporaneous log — records kept at the time you drive, not reconstructed in April. Estimating mileage after the fact is one of the fastest ways to lose the deduction in an audit. Odometer-based tools like ShiftTracker remove that risk: you enter your start and end odometer each shift and it calculates your deductible business miles in the exact format IRS Publication 463 asks for.

Your year-to-date mileage tax savings

One number worth watching all year is your year-to-date (YTD) mileage deduction — your business miles so far times the 2026 rate for when you drove them (72.5¢ through June 30, 76¢ from July 1). Tracking it month to month keeps your quarterly tax estimates accurate and shows you, in dollars, exactly why logging every mile matters. Here's what the deduction and rough tax savings look like at common mileage levels:

*Deduction × 22% federal bracket. Self-employment tax savings come on top, and a lower bracket saves less. Illustrative, not tax advice.

Standard mileage vs. actual expenses

You can deduct your vehicle two ways, and you pick one per vehicle: the standard mileage method (miles × the IRS rate for the date driven: 72.5 cents through June 30, 76 cents from July 1, 2026) or the actual expenses method (the business-use share of gas, insurance, repairs, depreciation, and more). For most gig drivers the standard mileage rate wins — it's simpler and usually larger — but a newer or expensive vehicle with high running costs can favor actual expenses. We break the math down side by side in mileage vs. actual expenses for gig drivers.

Tracking mileage across multiple vehicles and apps

Gig drivers often switch cars or run several apps at once, and the IRS treats each vehicle separately — you keep a distinct log per car and can't mix the two deduction methods on the same vehicle in the same year. Multi-apping (DoorDash + Uber Eats + Instacart in one shift) is completely fine; all of those business miles are deductible regardless of which app is active at the moment. The key is one continuous odometer log per vehicle: a start-of-shift and end-of-shift reading captures every business mile — including the unpaid miles between orders — without you tagging each trip by app.

What records the IRS requires

Under IRS Publication 463, a valid mileage log shows the date, your business purpose, and the miles driven for your business use, kept contemporaneously. Odometer readings at the start and end of each shift are the cleanest, most audit-defensible way to do it — and they're battery-friendly, because they don't run a second GPS in the background behind your gig apps all day. Keep your logs for at least three years after you file (IRS record-keeping guidance). For the year-by-year rates behind older returns, see our historical IRS mileage rates.

Detailed Guides

Beyond mileage: other gig deductions

Mileage is the biggest write-off, but it isn't the only one. Phone and data, hot bags and gear, parking and tolls, and a share of your car-related costs can all be deductible. See the full list in what expenses gig workers can deduct, then estimate your full bill with the 1099 tax calculator.

Frequently Asked Questions