If you deliver for DoorDash, Instacart, Uber Eats, Amazon Flex, or a similar app, the IRS treats you as a self-employed contractor. You’ll report your earnings on Schedule C and pay self-employment tax on your net profit — but that profit is calculated after subtracting your real business costs, and delivery drivers usually have more deductible expenses than they realize.
You’re Running a Delivery Business, Not Working a Job
Every delivery app sends you a 1099-NEC or 1099-K once you cross the reporting threshold, and the IRS expects that income reported as self-employment earnings. Ordinary and necessary business expenses reduce what you owe before any tax is calculated on the remainder.
Vehicle Deductions: Mileage or Actual Expenses
Your car, bike, or scooter is your biggest deductible cost, and you get to choose how to calculate it.
Standard Mileage Rate
For 2025 the rate is 70 cents per business mile. Track every mile driven while you’re online and available for deliveries, not just the miles with an order in the vehicle.
Actual Expense Method
Add up gas, insurance, repairs, depreciation, and registration, then apply the percentage of miles driven for delivery work. This can beat the mileage rate for drivers with newer or costlier vehicles.
Insulated Bags, Coolers, and Delivery Equipment
Hot bags, insulated grocery totes, coolers, phone mounts, and any cart or dolly you use for large orders are deductible business supplies, along with replacement bags when the old ones wear out.
Platform Fees and Service Charges
Background check fees, instant-pay or fast-pay charges, and any paid subscription tier a delivery app charges you are deductible business expenses.
Phone Plan and Delivery Apps
Deduct the business-use percentage of your phone bill, along with any paid mileage-tracking or order-optimization apps you subscribe to.
Parking, Tolls, and Hot Spot Fees
Parking fees paid while working, tolls incurred on delivery routes, and fees for parking near hot spot zones are all deductible.
Health Insurance for Full-Time Delivery Drivers
If delivery driving is your main income source and you aren’t eligible for a spouse’s employer plan, you may be able to deduct 100% of your health insurance premiums as a self-employed health insurance deduction on your personal return.
What Doesn’t Count
Driving from home to the area where you start accepting orders generally isn’t deductible, and if you use the standard mileage rate you cannot also deduct gas or repairs separately since those are already included in the rate.
Recordkeeping Tips
Use a mileage-tracking app that logs trips automatically in real time, since the IRS requires contemporaneous records rather than mileage reconstructed later. Save digital receipts for every other expense for at least three years.
Keeping Your Delivery Earnings Organized
Alongside your mileage and expense records, it’s worth routing your DoorDash, Instacart, or other delivery payouts into an account you keep separate from personal spending, so you always know what you’ve earned before expenses. Some drivers use a fee-free banking app like Chime for this, since it can post direct deposits early and skips the monthly fees. (Referral link — I may receive a reward if you open an account.)
Frequently Asked Questions
Do I need to track miles separately for each app? No — combine all your delivery mileage and expenses from every platform onto one Schedule C, since you’re operating a single delivery business regardless of how many apps you use.
Can I deduct my bike or scooter the same way as a car? Yes, though the actual expense method is usually more practical for bikes and scooters since the standard mileage rate is built around car costs.
What if delivery driving is just a side gig? You still report the income and expenses on Schedule C, and self-employment tax applies to your net profit regardless of whether it’s your main job or a side hustle.
Use our free business mileage calculator to see what your delivery driving is worth this year, and check with a licensed tax professional about which vehicle deduction method fits your situation.