How the 2025 IRS Mileage Rate Impacts Delivery Drivers
If you’re a delivery driver working for services like DoorDash, Uber Eats, Instacart, Amazon Flex, or running your own courier business, the current IRS mileage rate is one of the most important numbers you’ll encounter this year. Why? Because it directly affects how much you can deduct from your taxes for all the miles you drive while delivering goods, food, or packages.
Rather than calculating actual expenses like gas, oil changes, tire wear, and insurance, you can use the IRS standard mileage rate to simplify your deductions. Every work-related mile you track and document can reduce your taxable income, putting more money back in your pocket.
What Is the IRS Mileage Rate for 2025?
Although the IRS won’t release the official numbers until late 2024, early forecasts suggest the 2025 mileage rates may look like this:
- 67 cents per mile for business-related driving
- 21 cents per mile for medical and moving purposes (military only)
- 14 cents per mile for charitable use
As a delivery driver, you’ll be applying the business rate—which is typically the highest—because you’re using your vehicle as a tool to earn income.
Why the IRS Mileage Rate Matters for Delivery Work
Most delivery drivers are classified as independent contractors, which means taxes aren’t automatically withheld from your earnings. You’re responsible for tracking business expenses and paying self-employment tax. Mileage is often your biggest deduction—and it’s easy to calculate with the IRS rate.
Here’s why the deduction is so valuable:
- Every mile lowers your taxable income
- You reduce both income and self-employment tax
- You don’t have to keep track of gas or repairs—just miles
- It keeps tax filing simple and audit-proof (if well documented)
What Counts as Deductible Mileage for Delivery Drivers?
Not all miles you drive are deductible. You can only claim the miles driven specifically for work.
Deductible miles include:
- Driving from your house to the first delivery location
- Miles between customer drop-offs and new pickups
- Driving to the restaurant or store to pick up an order
- Returning home from your last delivery
Non-deductible miles include:
- Personal errands between deliveries
- Commuting to a central warehouse or office (if required by a platform)
- Breaks or side trips not related to active work
If you’re logged into your delivery app and actively accepting gigs, most of those miles are likely deductible—just make sure to track them properly.
How to Track Your Delivery Miles Accurately
The IRS requires you to keep a detailed mileage log in order to claim deductions. Your records must include:
- Date of the trip
- Starting and ending locations
- Purpose of the trip (e.g., “food delivery to Client X”)
- Total miles driven
Best Mileage Tracking Apps for Delivery Drivers
- Everlance – Designed for gig workers; offers automatic tracking, tax estimates, and IRS-compliant reports.
- MileIQ – Automatic trip detection, great for daily delivery shifts.
- TripLog – Highly customizable; offers odometer-based logs and team tracking.
- Stride – Free and simple; built for gig workers and includes deduction tips.
- Gridwise – Tailored to rideshare and delivery drivers; tracks income and miles.
Automatic apps detect when you’re driving and eliminate manual entry errors. Most allow you to classify trips with a swipe and generate reports for filing taxes or sending to a CPA.
How Much Can You Save with the 2025 IRS Mileage Rate?
Let’s say you drive 25,000 miles in 2025 doing food or package deliveries.
- 25,000 miles × $0.67 = $16,750 deduction
If you’re in the 22% federal tax bracket, that’s $3,685 in savings, just from mileage. And that doesn’t include the benefit of reducing your self-employment tax.
When combined with other deductions like phone bills, insulated bags, and platform fees, mileage can dramatically lower your year-end tax bill.
What If You Use Multiple Vehicles?
You can claim mileage for each vehicle used for deliveries, but you must:
- Keep a separate log for each car
- Track starting and ending odometer readings for both
- Choose one deduction method per vehicle (standard rate or actual expenses)
If you switch vehicles mid-year due to maintenance, leasing, or purchasing a new one, you can still claim mileage on each, but logs must be distinct and detailed.
Standard Mileage vs. Actual Expenses: What’s Best for Delivery Drivers?
The standard mileage method is ideal for most gig drivers because it’s simple and often more generous.
Standard Mileage Rate Pros:
- No need to keep gas or repair receipts
- Approved by the IRS
- Easy to automate using an app
Actual Expenses Pros:
- Might be better if you have very high vehicle costs
- Includes gas, insurance, repairs, and depreciation
- Useful for older vehicles or leased luxury cars
If you lease a high-end car or drive infrequently with high per-mile costs, calculate both methods and see which offers the larger deduction.
Warning: If you choose the actual expense method the first year you use a car for deliveries, you may not be allowed to switch back to the mileage rate later.
Watch for Mid-Year IRS Rate Changes
In volatile years (like 2022), the IRS may release a mid-year mileage rate update. If this happens in 2025:
- You must split your log: miles driven before and after the rate change
- Apply the correct rate to each period
- Update your tracking app or spreadsheet accordingly
Not tracking this properly can result in an incorrect deduction amount and increase your audit risk.
Pro Tips to Maximize Mileage Deductions
- Track from January 1st — don’t miss early-year miles
- Log all business miles daily or with an app
- Separate personal and business trips clearly
- Review mileage reports monthly for gaps
- Store logs for 3 years in case of audit
Being consistent with tracking is better than trying to reconstruct trips during tax season. The IRS won’t accept rough guesses.
Conclusion
The 2025 IRS mileage rate is a delivery driver’s best friend when it comes to lowering taxes. By tracking every work-related mile and applying the correct rate, you can claim thousands in deductions and reduce your self-employment tax liability.
Whether you deliver meals, packages, or people, staying organized with your mileage will help you keep more of what you earn. Use a tracking app, stay consistent, and let the IRS mileage rate work in your favor.