Every deduction NYC drivers should know.
Deductions lower the profit you pay tax on. Here’s a checklist of costs drivers commonly deduct, and the records you need to back them up.
Common driver deductions
| Expense | Deductible? | Note |
|---|---|---|
| Business miles (standard rate) | Yes | 72.5¢ per mile for 2026 |
| Gas, repairs, insurance, lease | Yes, with actual expenses | Only the business-use share; not on top of the mileage rate |
| Tolls and parking for trips | Yes | Allowed with either method |
| Phone and data plan | Business share | Keep a reasonable percentage |
| App service fees taken from fares | Often | Check your annual tax summary |
| TLC license, drug test, inspections | Yes | Costs to keep working as a driver |
| Car washes, water and supplies for riders | Yes | Keep receipts |
| Half of self-employment tax | Yes | Taken on your Form 1040 |
Sources: IRS: 2026 standard mileage rate (72.5¢) · IRS: Topic 510, business use of car · IRS: Self-employment tax · IRS: About Schedule C
What to keep
- A mileage log (dates, miles, purpose). Your app summaries’ online miles help.
- Receipts or bank and card statements for each expense.
- Your 1099s and annual summaries from every app.
The IRS says you must back up car deductions with adequate records.
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Frequently asked
Can I deduct my car payment?
Loan payments themselves aren’t deducted, but depreciation and loan interest on a business car can be part of actual expenses. Lease payments are deductible as actual expenses.
Can I deduct meals?
Usually not for ordinary daily meals while driving locally. Ask your CPA about your situation.
Sources: IRS: 2026 standard mileage rate (72.5¢) · IRS: Topic 510, business use of car · IRS: Self-employment tax · IRS: About Schedule C
Figures and rules on this page come from the official and published sources linked above, as of November 2026. People and numbers in the examples are made up to explain the idea. This page is general information, not tax or legal advice for your situation, and laws change; check the linked source or ask a licensed CPA before you act.
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