As a DoorDash driver, you're running a small business — and the IRS treats you like one. That means you're responsible for tracking your own income, paying self-employment taxes, and claiming every deduction you qualify for. The good news? Most DoorDash drivers leave hundreds — sometimes thousands — of dollars on the table each year simply because they don't know what they can deduct.
This guide breaks down every major deduction available to DoorDash drivers in 2025, how to calculate them, and what records you need to back them up.
1. Mileage — Your Biggest Deduction
For most DoorDash drivers, mileage is the single largest deduction on their return. The IRS allows you to deduct business miles at the standard mileage rate — which is 70 cents per mile in 2025. On 10,000 business miles, that's a $7,000 deduction.
Business miles include driving to pick up orders, delivering orders, and driving between restaurants. They do not include your commute from home to your first pickup — though the rules around that can get complex.
You have two options for the mileage deduction:
- Standard Mileage Rate: Multiply your business miles by 70¢. Simple, no receipts required beyond a mileage log.
- Actual Expenses: Track your real vehicle costs (gas, insurance, maintenance, depreciation) and deduct the business-use percentage.
TrackTax calculates both methods automatically so you can choose whichever gives you the larger deduction.
TrackTax tip: The IRS requires a contemporaneous mileage log — meaning you need to record miles as you drive, not reconstruct them later. TrackTax's GPS tracking does this automatically every shift.
2. Phone & Data Plan
Your phone is a required business tool for DoorDash. You can deduct the portion of your phone bill that corresponds to business use. Most drivers estimate 50–80% business use — just be prepared to justify that percentage if audited.
If you bought a new phone specifically for delivery work, you may be able to deduct the full purchase price or depreciate it over time. Keep your receipt.
3. Equipment & Supplies
Any equipment you use exclusively for your delivery business is deductible. Common examples include:
- Insulated delivery bags and hot bags
- Phone mounts for your car
- External battery packs and chargers
- A dash cam (if used for business protection)
- Reflective vests or uniforms with your delivery service branding
Under Section 179, you can often deduct the full cost of equipment in the year you buy it rather than depreciating over multiple years.
4. Parking & Tolls
Parking fees and tolls you pay while making deliveries are 100% deductible as business expenses. This includes meters, parking garages, and tolls on highways or bridges.
Note that parking tickets are not deductible — only actual fees for legal parking and road use.
Keep receipts or screenshots from parking apps and E-ZPass statements. TrackTax's expense logging lets you categorize these with a single tap so nothing slips through at year end.
5. Health Insurance Premiums
If you paid for your own health insurance (not through a spouse's employer plan), you may be able to deduct 100% of your premiums as a self-employed health insurance deduction. This is an above-the-line deduction, meaning it reduces your adjusted gross income even if you don't itemize.
This deduction is claimed on Schedule 1, not Schedule C, but it's directly tied to your self-employment income — so it only applies up to the amount of profit you report on your Schedule C.
6. Self-Employment Tax Deduction
As a self-employed driver, you pay both the employee and employer portions of Social Security and Medicare — a 15.3% self-employment tax on your net earnings. The good news: the IRS lets you deduct half of your SE tax from your gross income, which reduces your taxable income.
This deduction is calculated automatically on Schedule SE and flows to Schedule 1. You don't need to do anything extra to claim it — just make sure you're filing a Schedule SE, which you should be if you earned $400 or more in net self-employment income.
What Records Do You Need?
The IRS requires records that show the date, miles driven, and business purpose for every mileage claim. For other expenses, you need receipts or statements showing the amount, date, and business reason.
Keep records for at least three years — that's the standard audit window.
The easiest solution: TrackTax keeps all your mileage logs, expense receipts, and earnings data in one place, organized and ready to export at tax time. Pro users can generate a CSV your accountant can open directly.
Bottom Line
DoorDash drivers who actively track their deductions typically reduce their taxable income by $5,000–$15,000 compared to those who guess or skip deductions entirely. At a 25% effective tax rate, that's $1,250–$3,750 back in your pocket.
The key is tracking everything throughout the year — not scrambling in April. Use TrackTax to automate the mileage log, log expenses as they happen, and walk into tax season prepared.