1. Log every business mile
From the moment you leave your driveway to the drive home — including the deadhead miles between fares that most apps miss.
Free tool · 2026 tax year
Gig driver tax calculator.
See what your miles are really worth. Estimate your 2026 mileage deduction, tax savings, and quarterly set-aside — built for Uber, Lyft, DoorDash, and Instacart drivers.
20,000
Uses the 2026 blended rate of 74.25¢/mi — the IRS set 72.5¢ for Jan–Jun and 76¢ for Jul–Dec.
Filing status
Your 2026 mileage deduction
$14,850
Estimated tax you save
$3,366
≈ $2,098 self-employment tax + $1,268 income tax
Every mile is worth17¢ back
Set aside per quarter$1,303
Estimate only, not tax advice. Figures use 2026 IRS rates and assume the standard mileage method. Your actual result depends on your full return — confirm with a tax professional.
How the deduction works
Two IRS rates in 2026.
For the first time in years, the IRS changed the mileage rate mid-year. Miles you drove January through June deduct at 72.5¢ each; miles from July onward deduct at 76¢. The rate is tied to the date you drove — so an accurate, timestamped log is what turns those miles into a defensible deduction.
2. Multiply by the IRS rate
Your total business miles times the 2026 rate becomes a dollar-for-dollar deduction against your gig income on Schedule C.
3. Shrink both taxes
The deduction lowers the net profit that self-employment tax (15.3%) and income tax are calculated on — which is why each mile is worth far more than fuel money.
Common questions
Gig taxes, answered.
What is the 2026 IRS mileage rate?
72.5¢ per mile for miles driven January 1–June 30, 2026, then 76¢ per mile from July 1–December 31, 2026. The IRS raised it mid-year in Announcement 2026-11 due to rising fuel costs. The rate you use depends on the date you drove, not the date you file.
How much can I save by tracking my miles?
A driver logging 20,000 business miles deducts roughly $14,850 at 2026 rates — cutting their tax bill by about $3,400–$4,300 depending on income and state. Because self-employment tax alone is 15.3%, every deductible mile is worth roughly 16–24¢ back in your pocket.
How much should I set aside for quarterly taxes?
As a 1099 driver you owe self-employment tax plus income tax on your net profit, paid quarterly. A common rule of thumb is 25–30% of net earnings — but claiming your mileage deduction first lowers the amount owed. The calculator above gives a personalized quarterly figure.
Does it work if I drive for multiple apps?
Yes. The mileage deduction is the same across every 1099 platform. If you multi-app, total your business miles across DoorDash, Uber, Lyft, Instacart, and Amazon Flex — every business mile counts toward one Schedule C.