11 Tax Write-Offs for Rideshare Driver (Uber/Lyft)s in 2026

Mileage (Standard Rate)

Schedule C Line 9 · $5,000 — $20,000/yr

The IRS standard mileage rate for 2026 is $0.70/mile. Includes miles driving to pickups, during trips, and between rides. This is usually the largest deduction for rideshare drivers.

Phone & Data Plan

Schedule C Line 25 · $600 — $1,500/yr

Business percentage of your cell phone and data plan. Your phone is essential for receiving ride requests, navigation, and communication with riders.

Phone Mount & Accessories

Schedule C Line 22 · $20 — $100/yr

Dashboard phone mount, car charger, charging cables, and other phone accessories used while driving.

Car Maintenance & Repairs

Schedule C Line 21 · $500 — $3,000/yr

Oil changes, tire rotations, brake pads, and repairs. Only deductible if you use the actual expense method instead of the standard mileage rate.

Car Wash & Detailing

Schedule C Line 9 · $200 — $1,200/yr

Regular car washes and interior cleaning to maintain a professional vehicle for passengers. Deductible under actual expenses method.

Tolls & Parking

Schedule C Line 9 · $200 — $2,000/yr

Tolls paid during business driving and parking fees while waiting for riders. These are deductible even if you use the standard mileage rate.

Vehicle Insurance (Business Portion)

Schedule C Line 15 · $500 — $2,000/yr

Business-use percentage of your auto insurance. Rideshare-specific insurance or commercial endorsements are fully deductible if required for your driving.

Supplies for Passengers

Schedule C Line 22 · $50 — $500/yr

Water bottles, mints, phone chargers, tissues, and other amenities provided to passengers to earn better ratings and tips.

Vehicle Depreciation

Schedule C Line 13 · $1,000 — $5,000/yr

If using the actual expense method, you can depreciate the business-use portion of your vehicle over 5 years. Not available if using standard mileage rate.

Health Insurance Premiums

Schedule C Line 15 · $3,000 — $8,000/yr

Self-employed health insurance premiums are deductible on Form 1040 Line 17 (not Schedule C), but still reduce your overall tax burden as a self-employed driver.

Roadside Assistance

Schedule C Line 9 · $50 — $200/yr

AAA membership or other roadside assistance plans. Business percentage is deductible based on how much you drive for rideshare vs. personal use.

Home Office Deduction

30 (Form 8829)

If you use a dedicated space in your home regularly and exclusively for business, you can deduct it. Simplified method: $5 per square foot, up to 300 sq ft ($1,500 max). Regular method: proportionate share of rent/mortgage, utilities, insurance, and repairs.

Self-Employment Tax Deduction

Form 1040, Line 15

You can deduct the employer-equivalent portion of self-employment tax (7.65% of net earnings) as an above-the-line deduction on your Form 1040.

Health Insurance Premiums

Form 1040, Line 17

Self-employed individuals can deduct 100% of health, dental, and vision insurance premiums for themselves, their spouse, and dependents.

Retirement Contributions

Form 1040, Line 16

Contributions to a SEP-IRA (up to 25% of net earnings), Solo 401(k), or SIMPLE IRA are deductible and reduce both income tax and self-employment tax.

Qualified Business Income (QBI) Deduction

Form 1040, Line 13

Most self-employed individuals can deduct up to 20% of qualified business income under Section 199A, subject to income limits and business type.

Should rideshare drivers use the standard mileage rate or actual expenses?

Most rideshare drivers benefit from the standard mileage rate ($0.70/mile in 2026) because it is simpler and often results in a larger deduction. However, if you drive an expensive vehicle with high costs, the actual expense method may be better. You must choose one method in the first year you use the vehicle for business.

What miles can Uber and Lyft drivers deduct?

You can deduct miles driven to pick up passengers, during trips, between rides while waiting for requests, and driving to required vehicle inspections. You cannot deduct miles driving from home to your first pickup or from your last dropoff to home (commuting miles).

Do I need to track every mile I drive for Uber or Lyft?

Yes. The IRS requires contemporaneous records of business mileage. Use a mileage tracking app or keep a written log with the date, starting/ending odometer, destination, and business purpose for each trip.

Are Uber and Lyft service fees tax-deductible?

No. Service fees are deducted from your earnings before you receive payment, so they are not reported as income and cannot be deducted as an expense. Your gross income on the 1099 should already reflect fees taken out.