Tax deductions for Uber and Lyft drivers in 2026

If you drive for Uber or Lyft, you're a 1099 contractor — which means you can deduct every expense that qualifies as 'ordinary and necessary' for your business. Here's the list.

1. Mileage (the big one)

At $0.67/mile in 2026, mileage is by far the largest deduction for most rideshare drivers. Track every mile from the moment you turn the app on to the moment you stop accepting rides for the day.

2. Phone and data

Deduct the business-use percentage of your phone bill and the cost of your phone.

3. Tolls and parking

100% deductible when incurred while driving for work.

4. Snacks, water, and amenities

If you provide bottled water or snacks for passengers, those are deductible business expenses.

5. Phone mounts, chargers, and supplies

Anything you bought specifically for driving for work.

6. QBI deduction

As a 1099 contractor, you may qualify for the 20% Qualified Business Income deduction. Talk to a CPA.

MileTracker detects every drive in the background, lets you classify business or personal in one tap, and exports an IRS-ready PDF and CSV at tax time. Download MileTracker free on the App Store.