Understanding Mileage Tracking for Uber Drivers
Mileage tracking is essential for Uber drivers looking to maximize their tax deductions. The IRS allows for a standard mileage rate—72.5 cents per mile for business use in 2026. For full-time Uber drivers, this can translate into an annual deduction of $10,875 to $18,125, depending on the miles driven. This could result in tax savings of $2,719 to $4,531 at a 25% tax rate. However, accurate tracking is crucial to realizing these savings.
Many rideshare drivers mistakenly rely solely on the mileage tracked by Uber's app, which often only covers 'on-trip' miles. This approach can miss other deductible miles, such as driving to pick-up locations or between rides. By using a comprehensive mileage tracking method, drivers can ensure they capture all potential deductible miles and avoid leaving money on the table.