Driving for DoorDash, Instacart, Uber Eats, or Grubhub makes you a 1099 independent contractor — which means the IRS expects you to track your own business expenses, and every deduction you miss is money out of your pocket. Here's exactly how to track expenses as a delivery driver in 2026, what you can deduct, and how to keep it audit-ready without spreadsheets-by-hand.
Go deeper: the best expense tracker for 1099 contractors, the Schedule C categories guide, and how to handle quarterly estimated taxes. Deduction rules below reference the official IRS Schedule C guidance.
What delivery drivers can deduct
- Mileage or vehicle costs — your single biggest deduction. Use the standard mileage rate or actual expenses (gas, insurance, repairs, depreciation). Keep a mileage log.
- Phone & data — the business-use portion of your phone bill, since the apps run on your phone.
- Insulated & hot bags — delivery bags, drink carriers, and other supplies you buy.
- Tolls & parking — incurred while delivering (not commuting).
- Car maintenance & supplies — phone mounts, chargers, hand sanitizer, and similar items used for work.
Mileage vs. actual expenses
Delivery drivers rack up lots of miles, so the standard mileage rate usually wins — but compare it against actual costs in your first year. Whichever you choose, you must track your business miles, so log them from day one.
Delivery vs. rideshare: different expense profiles
If you also drive passengers, note the differences from rideshare driving: delivery work adds bags and supplies but skips passenger amenities. Track them separately so each deduction is clean.
Keep it audit-ready with ReceiptSync
The drivers who keep the most of their earnings capture every receipt the moment they get it. With ReceiptSync, snap a photo of any gas, supply, or repair receipt and it extracts the data and syncs to Google Sheets — so when quarterly taxes or an audit come around, your delivery deductions are organized and provable.