Two ways to deduct the car
If you drive for DoorDash, Uber, Lyft, or Instacart, you are a 1099 contractor. The car is often your biggest deduction. The IRS lets you pick one of two methods on Schedule C: the standard mileage rate or actual expenses.
The choice is not only about the bigger number. It also decides how many receipts you must keep.
2026 standard mileage rates
For 2026 the IRS split the year:
- January 1 – June 30, 2026: 72.5 cents per business mile
- July 1 – December 31, 2026: 76.0 cents per business mile
Write down the date of each trip. A mile in July is not worth the same as a mile in May.
Why most drivers use the standard rate
The standard rate is simple. It covers gas, oil, tires, routine repairs, insurance, and depreciation. You can still deduct, on top of that rate:
- Tolls and parking while you are working
- The business share of your phone and data plan
- Hot bags, phone mounts, and other delivery supplies
- The business share of interest on a car loan
A driver who logs 20,000 business miles in 2026 gets a large deduction without a folder of gas receipts. Your own miles and dates decide the exact amount.
When actual expenses can win
Actual expenses can make sense if the car has very high repairs or depreciation, or if you drive few work miles but have high fixed costs.
You must keep every gas, repair, and insurance receipt. You also need a mileage log so you can split business miles from personal miles. If 65% of your miles are for work, you deduct 65% of those costs.
A tool that does the math
You can compare both methods with the free tax calculator and read the mileage guide.
The GigDecider Android app can log work miles and apply the 2026 rate for the date of the trip. Pro can export a file for FreeTaxUSA. This is a record-keeping aid, not tax advice. Check the result with a tax pro if you are unsure.