Quick Answer
Food delivery drivers can deduct mileage (67¢/mile in 2026), phone bills, delivery bags, car maintenance, and other business expenses. The average driver deducts $3,000-5,000 annually, with mileage typically representing 70-80% of total deductions. You must choose between standard mileage or actual car expenses — not both.
Best Answer
Alex Torres, Gig Economy Tax Educator
Full-time and part-time drivers who want to maximize their tax deductions
The big one: Mileage deduction
Mileage is typically 70-80% of a delivery driver's total deductions. For 2026, the IRS standard mileage rate is 67 cents per mile for business driving. This covers gas, depreciation, insurance, maintenance, and repairs in one simple rate.
What miles count:
What miles don't count:
Example: Calculating your mileage deduction
Let's say Sarah drives for DoorDash and Instacart. In 2025, she tracked 8,500 business miles:
If Sarah's in the 22% tax bracket, this deduction saves her approximately $1,253 in income taxes plus $875 in self-employment taxes — total savings of about $2,128.
Phone and data plan expenses
Your phone is essential for delivery work, so you can deduct the business portion of your phone bill. Most drivers use their phone 50-80% for work during delivery hours.
Deductible phone expenses:
Example calculation:
If your monthly phone bill is $80 and you use your phone 60% for delivery work, you can deduct $48/month or $576/year.
Car expenses beyond mileage
Important: You must choose between the standard mileage rate OR actual car expenses — you cannot use both methods.
If you choose actual expenses instead of standard mileage:
Most drivers should use standard mileage because it's simpler and often results in a larger deduction.
Delivery supplies and equipment
100% deductible delivery supplies:
Home office expenses (if applicable):
If you have a dedicated space at home for managing your delivery business (tracking income, storing supplies), you may qualify for the home office deduction.
What you cannot deduct
Personal expenses:
Clothing: Regular clothes cannot be deduced, but uniforms or branded delivery clothing can be.
Record-keeping requirements
For mileage: Keep a detailed log with date, starting location, ending location, business purpose, and miles driven. Use an app like MileIQ, Stride, or Everlance.
For other expenses: Keep receipts and bank statements. Take photos of receipts immediately and store them digitally.
IRS requirements: You must have "adequate records" that show the amount, time, place, and business purpose of each expense.
State-specific considerations
Most states follow federal rules for business deductions, but a few have special requirements:
What you should do
1. Start tracking immediately — use a mileage tracking app from day one
2. Take photos of receipts as soon as you get them
3. Keep a dedicated business checking account to separate personal and business expenses
4. Review your deductions quarterly to make sure you're not missing anything
5. Consider the standard mileage rate unless your actual car expenses are significantly higher
Key takeaway: The average delivery driver can deduct $6,000-10,000 annually, with mileage being the largest deduction at 67¢ per business mile. Proper tracking and record-keeping are essential for maximizing deductions.
*Sources: [IRS Publication 463](https://www.irs.gov/pub/irs-pdf/p463.pdf), [IRS Publication 535](https://www.irs.gov/pub/irs-pdf/p535.pdf)*
Key Takeaway: Food delivery drivers can typically deduct $6,000-10,000 annually, with mileage at 67¢ per mile being the largest deduction, followed by phone bills and delivery supplies.
Common delivery driver deductions by expense category
| Expense Category | Deduction Method | Typical Annual Amount | Record-Keeping Required |
|---|---|---|---|
| Vehicle Mileage | 67¢ per business mile | $4,000-$8,000 | Mileage log with date/purpose |
| Phone/Data Plan | Business percentage of bill | $300-$800 | Monthly bills + usage estimate |
| Delivery Supplies | 100% of purchase price | $200-$500 | Receipts for bags, chargers, etc. |
| Car Maintenance | Business percentage | $300-$800 | Receipts + business use % |
| Car Washes | 100% if delivery-only | $200-$400 | Receipts showing date/amount |
More Perspectives
James Okafor, Self-Employment Tax Specialist
Drivers who are new to self-employment and unsure what they can legally deduct
Start with the basics: What makes an expense deductible?
As a new delivery driver, the golden rule is simple: you can deduct expenses that are ordinary and necessary for your delivery business. If you bought it or paid for it specifically for delivery work, it's probably deductible.
The three expenses every delivery driver should track
1. Mileage (your biggest deduction)
Download a mileage tracking app TODAY. This is usually 70-80% of your total deductions. At 67¢ per mile, even 5,000 delivery miles equals a $3,350 deduction.
2. Phone expenses
You need your phone to get orders, navigate, and contact customers. Deduct the percentage you use for delivery work — typically 50-70% of your monthly bill.
3. Delivery supplies
Insulated bags, car phone mounts, chargers — anything you bought specifically for delivery work is 100% deductible.
Common questions from new drivers
"Can I deduct my lunch while working?"
No, meals are generally not deductible unless you're traveling overnight away from home. The IRS considers eating a personal expense.
"What about my car insurance?"
If you use the standard mileage rate (recommended), insurance is already included. If you choose actual expenses, you can deduct the business percentage of your insurance.
"Can I deduct Netflix since I listen while driving?"
No, entertainment subscriptions are personal expenses, even if you use them while working.
Simple record-keeping for beginners
Mileage: Use an app like Stride (free) or MileIQ. Log every delivery trip.
Receipts: Take a photo immediately and store in Google Drive or Dropbox. Don't wait — receipts fade.
Bank statements: Keep statements showing delivery-related purchases.
Key takeaway: Focus on the big three deductions first: mileage (67¢/mile), phone bills (business percentage), and delivery supplies. Track everything from day one — you can't recreate records later.
Key Takeaway: New delivery drivers should focus on tracking mileage, phone expenses, and delivery supplies while maintaining simple but thorough records from the start.
Alex Torres, Gig Economy Tax Educator
People who deliver food as a side gig while working a regular job
Maximizing deductions as a side hustler
As a side hustler, every deduction matters more because it offsets your higher W-2 income tax bracket. If you're in the 22% bracket, a $1,000 deduction saves you $220 in income taxes plus $153 in self-employment taxes.
The side hustler's deduction strategy
Track partial-use expenses carefully
Since you use your car and phone for both personal and business purposes, you need to calculate the business percentage accurately.
Example: Weekend warrior driver
Consider the home office deduction
If you have a dedicated space for managing your delivery business — tracking income, storing supplies, handling paperwork — you might qualify for the home office deduction.
Common side hustler scenarios
Scenario 1: Using your regular car
Most side hustlers use their personal vehicle. Track business miles carefully and choose between standard mileage (67¢/mile) or actual expenses.
Scenario 2: Buying delivery-specific items
Insulated bags, phone mounts, car chargers bought specifically for delivery work are 100% deductible, even as a side hustler.
Scenario 3: Car maintenance timing
If you get oil changes or repairs more frequently due to delivery driving, the additional maintenance can be deductible (business percentage).
Record-keeping tips for busy side hustlers
Key takeaway: Side hustlers should focus on accurate business-use percentages for shared expenses like cars and phones, while fully deducting delivery-specific purchases like bags and equipment.
Key Takeaway: Side hustlers should carefully track business-use percentages for shared expenses and fully deduct delivery-specific purchases to maximize tax savings in higher brackets.
Sources
- IRS Publication 463 — Travel, Gift, and Car Expenses
- IRS Publication 535 — Business Expenses
- Schedule C Instructions — Instructions for Schedule C (Form 1040)
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.