If you’re driving for Uber, Lyft, DoorDash, or any gig platform in 2025, tracking your mileage is no longer optional—it’s essential. Done right, it can shave thousands off your tax bill. But do it wrong (or not at all), and you’re likely overpaying Uncle Sam.
This guide breaks down everything rideshare drivers need to know about mileage tracking in 2025. We’ll walk you through IRS mileage rules, the best tracking apps, and expert tips to help you keep more of what you earn.
Why Mileage Tracking Is a Big Deal in 2025
The IRS allows self-employed workers, including rideshare drivers, to deduct either a portion of their actual vehicle expenses or use the standard mileage rate. For most drivers, the standard rate is easier and saves more.
🔹 IRS Standard Mileage Rate for 2025: 65.5 cents per mile
That means if you drive 20,000 business miles in a year, you could deduct $13,100 from your taxable income. That’s real money back in your pocket.
Rideshare Drivers Are Independent Contractors
As a gig driver, you’re not an employee—you’re an independent contractor. That means:
- You receive a 1099-NEC or 1099-K, not a W-2.
- You must file and pay your own taxes, including self-employment tax (Social Security + Medicare).
- The IRS expects you to make quarterly estimated payments if you’ll owe more than $1,000 for the year.
Smart mileage tracking helps lower your taxable income, reducing both your federal and self-employment tax bill.
Which Miles Are Deductible for Uber & Lyft?
You can only deduct business-related miles, including:
- Driving to pick up a passenger
- Dropping off passengers
- Driving between rides
- Repositioning to a hotspot or busy area
Example: You drop off a rider at the airport and then drive 7 miles to a high-demand area. Those 7 miles count.
Miles You Cannot Deduct
- Commuting from home to your first passenger of the day
- Driving home after your last ride
- Running personal errands during your shift
Pro tip: Start and end your shift at a coffee shop or public place to help convert some “commute” miles into deductible ones.
Best Mileage Tracking Apps for Rideshare Drivers in 2025
Manual logs work—but let’s be honest, most of us won’t stick with them. Here are the top-rated apps drivers swear by:
- Stride (Free): Tracks mileage automatically, logs expenses, and generates tax reports. Perfect for budget-conscious drivers.
- Everlance: Premium app that auto-tracks trips and backs up data to the cloud. Great for serious gig workers.
- MileIQ: Ideal if you use the same vehicle for both personal and business trips. Lets you swipe to categorize each trip.
“Using an IRS-compliant mileage app is like giving yourself a raise. It pays you back in tax savings.” — Janet Rhodes, CPA, Gig Economy Tax Specialist
What to Look for in a Mileage App
- Automatic GPS tracking
- Cloud backups to prevent data loss
- One-tap export of IRS-ready reports
- Trip categorization: business vs personal
Manual Mileage Logs: What to Include
If you prefer pen and paper (or Excel), be sure to log:
- Date of trip
- Start and end odometer reading
- Start and end locations
- Purpose of trip
Mileage Log Example:
March 5, 2025 – Start: 45,122 mi | End: 45,203 mi
Trip: UberX ride – pickup at Union Station, drop-off at LAX
Standard Mileage vs. Actual Expenses: Which Is Better?
The standard mileage rate includes wear-and-tear, insurance, maintenance, gas, and depreciation. But it doesn’t cover:
- Tolls and parking fees
- Snacks for passengers
- Portion of your phone bill used for rideshare work
“Choosing between standard mileage and actual expenses can make or break your refund. Run both numbers and see which saves more.” — Sarah Kim, EA, IRS Enrolled Agent
If you drive a newer car with high loan payments or high repair costs, the actual expense method could make sense. Otherwise, mileage is typically easier and more lucrative.
Pro Tips for Accurate Mileage Tracking
1. Log Miles Daily or Weekly
The longer you wait, the more you forget. Consistency = savings.
2. Snap Odometer Photos
Take a picture of your odometer on January 1st and December 31st. The IRS requires your total annual mileage to verify your deduction.
3. Separate Business and Personal Trips
Mixing them is a red flag. Use apps that help classify trips quickly and clearly.
4. Save Your Logs and Reports
Email yourself a copy or store them in Google Drive. The IRS can audit up to three years back.
Common Mileage Mistakes Rideshare Drivers Make
- ❌ Forgetting Repositioning Miles: They add up—don’t miss them!
- ❌ Logging Only Paid Rides: Every business mile counts, even without a passenger.
- ❌ Vague Notes: “Uber driving” is not enough. Be specific.
Combining Mileage with Other Tax Deductions
Even if you use the mileage deduction, you can also write off:
- Phone and data plan (portion used for driving)
- Snacks or bottled water for passengers
- Tolls and paid parking fees
Not allowed: You cannot deduct gas or maintenance separately if you use the standard mileage rate—it’s already included.
Final Thoughts: Every Mile Matters
In 2025, smart mileage tracking could save the average rideshare driver $3,000–$7,000 a year in taxes. That’s not a bonus—it’s money you’ve already earned.
Whether you log manually or use a sleek app, the most important thing is to start tracking now. Accuracy is everything, and the IRS isn’t lenient about sloppy records.
Pro Tip:
Pair your mileage tracking app with a gig economy bookkeeping tool like Hurdlr or QuickBooks Self-Employed. Track income, mileage, and expenses all in one place—and stay audit-ready year-round.
Start driving smarter. Every mile logged is money saved. And every deduction is a mile closer to financial freedom.