If you deliver for DoorDash, Uber Eats, Grubhub, or any other food delivery app, you’re considered an independent contractor — not an employee. That means you’re responsible for your own taxes, but it also means you qualify for valuable tax deductions that can significantly reduce what you owe.
At our tax preparation service, we help gig-economy workers claim every deduction they’re legally entitled to so they can keep more of their hard-earned money. Below is a complete guide to the most important tax deductions for DoorDash drivers.
1. Mileage Deduction
Most Dashers’ largest deduction is vehicle mileage. You can deduct one of the following:
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Standard Mileage Rate – A set amount per mile driven for business purposes (IRS rate varies per year).
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Actual Expense Method – Deduct a percentage of your actual car expenses (gas, repairs, insurance, etc.).
Most drivers save more using the standard mileage rate, but we help calculate which option benefits you the most.
What Counts as Business Mileage?
✔ Driving to pick up an order
✔ Driving to deliver an order
✔ Driving to another hot spot
Personal miles are not deductible, so keeping a detailed log is essential. We recommend an app-based tracker so you don’t lose valuable deductions.
2. Phone & Data Plan Deduction
You can deduct the business-use percentage of your phone bill, and device purchase. Most Dashers write off 50–80% of their phone expenses.
3. Car Expenses (If Not Using the Standard Mileage Rate)
If you choose the actual expense method, you can deduct the business-use portion of gas, oil changes, car maintenance & repairs, insurance, registration fees, depreciation or lease payments, and car washes (business-related).
4. Hot Bags, Gear, and Supplies
Any equipment you purchase specifically for delivery driving is deductible, including: insulated hot bags, drink carriers, phone mounts, dash cams, and portable chargers. Keep your receipts, every small deduction adds up.
5. Parking, Tolls, and Road Fees
If you pay parking fees or tolls, these expenses are fully deductible as long as they’re work-related. Tickets and traffic fines are not deductible.
6. Health Insurance Deduction
If you pay for your own health insurance and are not eligible for employer-provided coverage, you may qualify for a self-employed health insurance deduction.
This can significantly reduce your taxable income.
7. Car Loan Interest (Business Portion)
Financing a vehicle? A percentage of the interest portion of your payments may also be deductible if you use the car for DoorDash deliveries.
8. Personal Protective Equipment (PPE)
If you purchased PPE for work, you can deduct expenses such as masks, gloves, hand sanitizer, and cleaning wipes. These must be used for delivery work to qualify.
Need Expert Tax Help? We’ve Got You.
Filing taxes as a DoorDash driver can feel overwhelming, especially if you’re unsure what qualifies as a deduction or how to track business miles properly.
Let us take the guesswork out of filing taxes as a DoorDash driver.
Book your tax appointment today and keep more of what you earn this year.
