Plain-words guide

Can gig drivers deduct gas? Miles vs. actual car costs

Short answer: not on top of the mileage rate. The rate already pays you back for gas. But there’s a second way that counts gas instead.

Updated October 10, 2026 · Sources

Way one: the mileage rate

You multiply your business miles by the IRS rate. The rate is 72.5 cents a mile from January 1 to June 30, and 76 cents from July 1 to December 31.

It covers gas, oil, repairs, tires, insurance and the car wearing out. So those can’t be added on top.

Parking and tolls for work still count, on top of the rate.

Way two: actual costs

You add up what the car really cost: gas, repairs, insurance and more. Then you count only the share used for work.

It takes more records, like every receipt and your total miles for the year.

Picking one

To use the mileage rate for a car you own, the IRS says you pick it in the first year you use the car for work. In later years, you can usually switch between the two.

Most drivers use the mileage rate. It needs only a mile log, and it’s often the bigger number for cars that get good gas mileage.

What drivers commonly do

Many drivers keep a mile tracker running on every shift and save parking and toll receipts.

Tax Pit Stop uses the mileage rate and shows what your miles take off your tax.

The figures here are for the 2026 tax year, from IRS documents. Tax rules change from year to year.

Work out your own number

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