Quick Answer
Track all business miles using a mileage app or logbook, recording date, starting/ending locations, purpose, and odometer readings. For 2026, the IRS standard mileage rate is 67 cents per mile, so a driver logging 20,000 business miles can deduct $13,400.
Best Answer
Alex Torres, Gig Economy Tax Educator
Full-time and part-time rideshare drivers who need comprehensive mileage tracking
What mileage can I deduct as an Uber/Lyft driver?
You can deduct mileage for:
You CANNOT deduct:
Example: Daily mileage breakdown
Let's say you drive for Uber in Chicago and track these miles on Tuesday:
How to track mileage: Three methods
Method 1: Mileage tracking apps (recommended)
Best apps for rideshare drivers:
These apps use GPS to automatically track your drives and categorize them as business or personal. They generate IRS-compliant reports.
Method 2: Manual logbook
If you prefer pen and paper, record:
Method 3: Odometer method
Record your odometer at the beginning and end of each work day:
Key tracking requirements
The IRS requires contemporaneous records — you must track mileage at the time of travel, not reconstruct it later. According to IRS Publication 463, your records must show:
1. Mileage for each business use
2. Date of the expense
3. Business purpose (rideshare driving)
4. Starting and ending locations
Common mistakes that cost money
What you should do
1. Choose a tracking method today — apps are easiest and most accurate
2. Track from your first day — you can't recreate records later
3. Review your tracking weekly to catch any gaps or errors
4. Keep records for at least 3 years in case of an audit
Start tracking immediately, even if you're mid-year. Every mile counts, and at 67 cents per mile, proper tracking can save you thousands on your taxes.
Key takeaway: Most rideshare drivers can deduct 15,000-25,000 business miles annually, worth $10,000-$16,750 in deductions. Consistent tracking from day one is essential.
Key Takeaway: Most rideshare drivers can deduct 15,000-25,000 business miles annually, worth $10,000-$16,750 in deductions at the 2026 rate of 67 cents per mile.
Standard mileage rate vs. actual expense method comparison
| Method | 2026 Deduction | Record Keeping | Best For |
|---|---|---|---|
| Standard Mileage | 67¢ per business mile | Miles, dates, locations | Most drivers, simpler tracking |
| Actual Expenses | Business % of all car costs | All receipts, mileage %, total expenses | Expensive vehicles, high maintenance costs |
More Perspectives
James Okafor, Self-Employment Tax Specialist
First-year drivers who need to understand the basics of business mileage tracking
Starting mileage tracking as a new rideshare driver
As a new driver, you're probably overwhelmed by tax requirements. The good news: mileage tracking is straightforward once you establish a system.
The two deduction methods
You can choose between:
Standard mileage rate (easier):
Actual expense method (complex):
Essential records for new drivers
The IRS requires four pieces of information for each business trip:
1. Date: When did you drive?
2. Miles: How many business miles?
3. Purpose: "Uber/Lyft rideshare driving"
4. Destination: Starting and ending locations
Example for a new driver
Sarah just started driving for Lyft in Atlanta. In her first month, she tracked:
Without tracking, she'd lose this $1,239 deduction — money that stays in her pocket instead of going to taxes.
What you should do immediately
1. Download a mileage app before your next driving session
2. Record your current odometer reading as your business baseline
3. Set a daily reminder to check your mileage log
4. Keep records separate from personal driving
Remember: The IRS says you must track mileage "at or near the time" of travel. You can't reconstruct months of driving from memory.
Key takeaway: New drivers who track mileage from day one typically deduct $8,000-$12,000 annually, while those who don't track properly miss most of this deduction.
Key Takeaway: New drivers who track mileage from day one typically deduct $8,000-$12,000 annually, while those who don't track properly miss most of this deduction.
James Okafor, Self-Employment Tax Specialist
Part-time drivers who also have traditional employment and need to separate business and personal use
Mileage tracking when rideshare is your side hustle
As a part-time driver with a day job, you need to be extra careful about separating business and personal mileage. The IRS scrutinizes mixed-use vehicles.
Common side-hustle scenarios
Weekend warrior: You drive for Uber/Lyft only on weekends
Evening driver: You drive after your day job
Example: Mixed-use tracking
Mike works downtown and drives for Uber evenings and weekends:
Wednesday evening:
Thursday morning commute:
Percentage method for mixed use
If you use actual expenses instead of standard mileage:
Example: 25,000 total miles, 8,000 business miles = 32% business use
Record-keeping tips for side hustlers
1. Use automatic tracking: Apps like Stride detect when you're driving for business
2. Set boundaries: Clearly define when you're "on duty" for rideshare
3. Track consistently: Don't skip days because "it was only a few rides"
4. Document your system: Write down your tracking method for consistency
Side-hustle drivers often have lower business mileage percentages than full-time drivers, but every business mile still saves you money at tax time.
Key takeaway: Part-time drivers typically achieve 15-30% business use of their vehicle, still generating $3,000-$8,000 in annual mileage deductions with proper tracking.
Key Takeaway: Part-time drivers typically achieve 15-30% business use of their vehicle, still generating $3,000-$8,000 in annual mileage deductions with proper tracking.
Sources
- IRS Publication 463 — Travel, Gift, and Car Expenses
- IRS Standard Mileage Rates — Current year mileage rates
Reviewed by Alex Torres, Gig Economy Tax Educator 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.