Calculate your mileage deduction
Your mileage deduction
How the mileage deduction works
The IRS lets you deduct business driving at a standard rate per mile — $0.70/mile in 2025. You multiply your total business miles by this rate to get your deduction, which reduces your net self-employment income and therefore both your SE tax and income tax.
What counts as business mileage?
Any driving for your gig work: rideshare pickups and dropoffs, delivery routes, driving to meet clients, going to a job site, picking up supplies, and driving to a temporary work location. Commuting from home to a regular office does not count — but most gig workers don't have a fixed office, so nearly all driving qualifies.
Standard rate vs. actual expenses
Instead of the standard rate, you can deduct your actual vehicle costs (fuel, insurance, maintenance, depreciation) multiplied by your business use percentage. The standard mileage rate is simpler and usually better for high-mileage drivers. Actual expenses can be better for expensive or inefficient vehicles. You can't switch methods mid-year.