
Yes, the IRS accepts and allows deductions for mileage driven while performing Uber (or similar rideshare) services, provided the driving meets the agency's criteria for a legitimate business expense. As an independent contractor, you can deduct qualifying miles using either the Standard Mileage Rate or the Actual Expense method, with proper contemporaneous records being the critical requirement for audit-proof .
The foundational rule is that deductible driving must be both "ordinary and necessary" for your rideshare business. This primarily includes miles driven:
Crucially, your commute from your home to your first "waiting area" and your return trip home at the end of your work shift are considered personal miles and are not deductible. The IRS views your primary place of business as wherever you log into the app to begin accepting trips.
For the 2024 tax year, the IRS Standard Mileage Rate for business use is 67 cents per mile. This is the most common and simplified method for Uber drivers. You simply multiply your total deductible business miles by this rate. The alternative is the Actual Expense method, where you track and deduct the actual costs of operating your vehicle (gas, insurance, repairs, lease payments, depreciation, etc.), proportionally based on your business-use percentage.
A comparison clarifies the choice:
| Deduction Method | How It Works | Best For |
|---|---|---|
| Standard Mileage Rate | Multiply total business miles by the annual IRS rate (e.g., 67¢/mile for 2024). | Most drivers, especially those with efficient cars or who drive many business miles. It's simpler and includes depreciation. |
| Actual Expenses | Track all vehicle costs, then deduct the percentage used for business (Business Miles / Total Miles). | Drivers with very high actual costs (e.g., luxury car loan, frequent major repairs) or low annual business mileage. |
The non-negotiable requirement is detailed record-keeping. Industry guidance stresses that without a log, your deduction is vulnerable if audited. You must document the date, mileage, and business purpose for each trip. While a dedicated notebook works, using a mileage-tracking app that automatically logs trips is the professional standard, as it creates digital, time-stamped records the IRS views as more reliable.
To claim the deduction, you will report the total amount on Schedule C (Form 1040), Profit or Loss from Business, which flows to your main tax return. The deduction directly reduces your taxable business income, lowering your self-employment tax and income tax liability. Always retain your mileage logs and supporting documents for at least three years from your filing date.

I’ve been driving for Uber for five years and deduct my mileage every single time. The key is knowing what counts. From the moment I turn the app on and I'm "available," I start my tracker. Every mile driven to a pickup and with a rider in the car gets logged. The second I go offline for lunch or head home, I stop it. My tax person only wants the total business miles and the dates. I use an app that runs in the background—it’s automatic and gives me a report at tax time. It’s straightforward once you get the system down. Just never try to deduct your drive to your favorite hotspot to start your day; that’s on you.

As a tax preparer who works with many gig workers, the issue isn’t whether the IRS allows it—they absolutely do. The issue is documentation. I advise clients to choose the standard mileage method; it’s simpler and almost always more beneficial. However, if you don’t have a mileage log, we have a problem. The IRS requires contemporaneous records—meaning you log it as it happens, not reconstruct it at year-end. I’ve seen clients try to estimate, and it never holds up under scrutiny. Use a app, keep receipts for any tolls or parking paid during rides, and bring me that data. That mileage deduction is often the largest expense on their Schedule C, making accurate tracking essential for maximizing their legitimate tax savings.

Think of your car as a mobile office. The IRS lets you write off the wear and tear from using that office for work. But you have to prove the “for work” part. Here’s the simple breakdown:

My first year, I complicated things by tracking every gas receipt and oil change for the Actual Expense method. It was a headache. My accountant showed me I’d have gotten a larger deduction with far less work using the Standard Mileage Rate. Now, I focus solely on logging my business miles meticulously. I define my “workday” as the period my Uber app is active and I’m accepting rides. Any driving during that window is potentially deductible, excluding personal errands. I’ve learned that strategic logging is everything—knowing that the drive to the coffee shop is personal, but the drive from that shop to a passenger’s location after I get a ping is 100% business. This mindset shift turned tax time from a stressful reconstruction project into a simple reporting task. The deduction significantly lowers my taxable income, which is crucial since nothing is withheld from my Uber pay.


