Self-Employed Delivery Driver Expenses: What You Can Deduct

It's difficult to envision a time before on-demand food delivery services like Uber Eats, DoorDash, GrubHub, and Postmates became a daily part of life. These services provide convenience to end users and a flexible way for independent contractors and self-employed gig workers to make a living. Unlike W-2 employees, self-employed delivery drivers have several opportunities to claim tax deductions, which reduce their taxable income.

Self-employed delivery drivers should read this article to learn about the expenses they can deduct, the forms they'll need to claim deductions, and some costs that are not eligible to be deducted from their self-employment income. 

Can Food Delivery Drivers Take Tax Deductions?

Self-employed food delivery drivers can write off vehicle expenses related to their work. Your business expenses must be ordinary (common and acceptable expenses for gig drivers) and necessary (appropriate and helpful expenses for your work) to qualify. 

This means you can deduct costs related to using your car, phone, and other business tools to deliver meals more efficiently. 

For many of your tax deductions, you’ll need to calculate the percentage you've used your car or phone for business and personal use. 

Top 9 Tax Deductions for Food Delivery Drivers

You should retain documents throughout the year to claim eligible delivery driver tax deductions, file taxes, and defend against a potential audit. The IRS can audit your returns for up to three years (or longer, sometimes). 

Keep the following documents in addition to your other income tax return paperwork:

• 1099 forms

• Receipts for business purchases

• Mileage log, including business vs. personal travel

• Tip reports

• Vehicle or bicycle purchase paperwork

• Repairs and maintenance receipts

• Cell phone usage reports

• Bookkeeping records

• Health insurance premium payments

• Business license paperwork

• Quarterly and estimated tax payments

Mileage

Independent contractors and self-employed gig drivers can deduct their business mileage.

There are two ways you can deduct mileage for your gig delivery business: standard mileage rate or actual expense. When comparing the two methods, keep in mind:

• If it’s your first year using your vehicle for business, you must choose the standard mileage rate. 

• After the first year, you can choose between the standard mileage rate and the actual expense method.

• If you’re driving a leased vehicle, you must use the standard mileage rate method for the entire lease period, including renewals.

The standard mileage rate for 2025 is 70 cents per mile for business use, up from 67 cents in 2024. If you choose the actual expense method, you’ll determine the costs of operating your vehicle exclusively for business use. You can include the actual costs for: 

• Depreciation (or lease payments) attributable to the portion of business miles driven

• Gas

• Insurance 

• Licenses

• Oil changes

• Registration fees

• Repairs

• Tires

You can also deduct mileage during your travels to make your deliveries. Deduct mileage driven: 

• As you search for your first food delivery pickup

• Between delivery pickups

• For supply purchases needed to do the job

• For work-related errands 

• From your last food delivery dropoff back to your home

• With food delivery items in your car to your destination

Parking

You can deduct the cost of parking fees incurred while delivering meals, which can be claimed whether you choose the actual car expenses option or the standard mileage rate option.

As with all deductible expenses, make sure you retain receipts and other materials supporting your claim.  

Phone expenses

Mobile phone expenses are also tax-deductible, including your phone bill. The tax deduction for phone expenses extends to: 

• Cables 

• Chargers

• Phone mounts

To claim your deduction for phone expenses, you’ll go to Part 5 of Schedule C (Form 1040). You’ll include this with other applicable expenses. The final amount should be added to line 27a of the form.

Tolls

Any fees you've paid for tolls are tax-deductible as long as you weren't reimbursed. You cannot claim this deduction if you were reimbursed for the tolls you paid while delivering food for your self-employed delivery business. 

Some platforms popular with gig drivers provide automatic toll reimbursements. 

Roadside assistance

Car trouble is never fun, but there's a silver lining: roadside assistance can qualify as a tax deduction. Just remember that the fees paid for roadside assistance programs are tax-deductible based on the percentage of the service that you use for work.

It may also be helpful to track your business miles to determine the ratio of miles used for business and non-business. This will allow you to determine the deductible amount for your roadside assistance.

Health insurance

You can claim a deduction for health insurance if:

• You aren’t able to obtain health insurance coverage from an employer or spouse

• You have a business profit

• You’re a self-employed food delivery driver

If you deduct health insurance, you’ll need to consider the following:

1. If you receive government subsidies for your health insurance payments, you can deduct only the cost of your monthly bill. You can’t deduct the original monthly cost of your health insurance plan.

2. If your net business profit for your food delivery business is lower than the cost of your health insurance premiums, you can deduct the amount equal to your business profit.

Platform fees, commissions

You can also write off fees related to professional services you rely on to transport meals and manage your self-employed delivery business. Eligible fees include 

• Mileage tracking software

• Navigation app subscriptions 

• Bookkeeping and expense management software

• Virtual accounting costs that help maximize your tax savings                                                                                                                                                                                                                                                                                                     

Home office

You can generally deduct certain costs of maintaining a home office. To qualify, you must dedicate part of your house or apartment exclusively for business use, and you cannot have a primary workplace outside your home.

Eligible business owners can determine their home office deduction using either the simplified or the regular method.

• To use the simplified method, multiply your home office square footage by $5. The maximum simplified home office deduction is $1,500 (300 square feet).

• To use the regular method, determine your total home-related expenses. Include costs such as rent, mortgage interest, maintenance, and utilities. Allocate a portion of the costs to your home office based on the percentage of the area dedicated to your workspace. For example, if your home office takes up 15% of your home’s square footage, your deduction equals 15% of your total home expenses.

Calculate and report your home office deduction using IRS Form 8829, Expenses for Business Use of Your Home. 

Retirement savings plans

Self-employed delivery drivers can deduct contributions to their retirement accounts. Common types of retirement plans for self-employed independent contractors include: 

• Simplified employee pension 

• 401(k) plan

• Savings Incentive Match Plan for Employees

The IRS imposes annual contribution limits depending on your self-employment compensation. 

Claiming Self-Employed Delivery Driver Deductions

Use the records you've retained throughout the year and other supporting documentation to prepare and file your independent contractor self-employed delivery business tax return by tax day, April 15. Unless you elect to operate as a different entity, the IRS will treat you as a sole proprietor for tax purposes. Tax forms you may use at tax time to file your taxes and claim tax deductions include: 

IRS Form 1040

Individual taxpayers file IRS Form 1040, U.S. Individual Income Tax Return. Form 1040 calculates your federal taxable income and tax liability.

You should also file a schedule to report self-employment income: Form 1040 Schedules C.

Form 1040, Schedule C

To report business income and expenses, you should file IRS Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Schedule C calculates your business income or loss from self-employment. 

Form 1040, Schedule SE

You must also pay the 15.3% self-employment tax on your self-employed income. Sole proprietors must calculate self-employment tax liability using IRS Schedule SE (Form 1040), Self-Employment Tax. You can claim half of what you paid in self-employment taxes as a deduction.  

Quarterly Estimated Taxes

Self-employed individuals must also estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for the 2025 tax year include the following: 

• April 15

• June 16

• September 15

• January 15, 2026

Form 1040, Schedule ES

Use IRS Form 1040-ES, Estimated Taxes for Individuals, to calculate and pay your quarterly estimated taxes. The form includes tax information such as payment vouchers and instructions for filing online.

Self-Employed Delivery Driver Expenses You Cannot Claim

While there are many costs you can claim to reduce your self-employed taxable income, not everything you may pay for business purposes over the course of a workday is tax-deductible.

For example, speeding tickets and other traffic violations you receive while delivering are not deductible, nor are tolls you pay if you commute to an office before delivery. However, tolls you pay while delivering food are tax-deductible. 

Maximize Your Tax Deductions for Food Delivery with 1-800Accountant!

Balancing your self-employed delivery responsibilities as you manage your taxes can be challenging for even the most experienced gig workers. If handling your small business self-employed taxes has taken you on a detour, get back on track with the tax professionals at 1-800Accountant, America's leading virtual accounting firm, to address your accounting and financial requirements.

Save time and achieve your annual financial goals with our suite of affordable, tax-deductible financial services for delivery drivers. Schedule a quick consultation–usually 30 minutes or less—to learn how tax advisory and business tax preparation will help your delivery business maintain full IRS compliance with maximum tax savings.