🧾 Your Mileage
Total Tax Deduction
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Income Tax Savings
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SE Tax Savings
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Total Tax Saved
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Deduction Per Mile
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IRS Mileage Deduction for Rideshare Drivers
The standard mileage deduction is one of the most valuable tax tools available to rideshare drivers. Instead of tracking every gas receipt, oil change, and repair, you multiply your business miles by the IRS rate and deduct that amount from your taxable income.
// Standard mileage deduction
Deduction = Business miles × IRS rate ($0.67 in 2024)
Tax saved = Deduction × (income tax rate + SE tax rate)
// Example: 20,000 miles × $0.67 = $13,400 deduction
// At 22% bracket: saves $13,400 × (22% + 15.3%) = $4,996
Deduction = Business miles × IRS rate ($0.67 in 2024)
Tax saved = Deduction × (income tax rate + SE tax rate)
// Example: 20,000 miles × $0.67 = $13,400 deduction
// At 22% bracket: saves $13,400 × (22% + 15.3%) = $4,996
What Miles Count as Business Miles?
- Miles with a passenger — always deductible
- Miles driving to pick up a passenger (from when you accept the ride) — deductible
- Miles between trips while the app is on — deductible
- Miles from home to your first pickup — generally NOT deductible (commuting)
- Miles after your last drop-off driving home — NOT deductible
Standard mileage vs. actual expenses — which is better?
For most rideshare drivers, standard mileage wins. It's simpler (no receipts needed — just a mileage log), and at $0.67/mile it often exceeds actual costs. Actual expenses may win if you have a very expensive vehicle with high insurance, financing, and maintenance. You must choose at the start of the year and stick with it — you can't switch mid-year. If you start with actual expenses in year one, you can never switch to standard mileage for that vehicle.
How do I track mileage for taxes?
The IRS requires a contemporaneous mileage log — recorded at or near the time of driving, not reconstructed at tax time. Best practice: use an automatic mileage tracking app. Stride (free), Everlance, or MileIQ all track automatically via GPS and export IRS-ready reports. Uber and Lyft also provide annual mileage summaries in your driver dashboard, but these typically only include on-trip miles — you should track all app-on miles yourself.