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Gig Driver Tax Deductions 2026: The Short Checklist (Canada & US)

Writer: Vikash Verma
Vikash Verma
Jan 24
2 min read

Updated: Sep 30

If you deliver food, drive rideshare or haul packages, you are self-employed. That means you can deduct the cost of earning your income. This is the short list of what to claim, and the one record that backs it all up.

Drive for work? Fuelshine logs every work trip automatically, so your mileage log is ready at tax time. Get it on Google Play | Download on the App Store

1. Your car: the biggest deduction

In the US, you can use the IRS standard mileage rate: 72.5¢ per business mile for January to June 2026, and 76¢ per mile from July 1, 2026. Multiply your business miles by the rate.

In Canada, self-employed drivers claim their actual vehicle costs (fuel, insurance, maintenance, licence, lease or depreciation) multiplied by the share of km driven for work. The CRA per-km rate (73¢ for the first 5,000 km and 67¢ after that in 2026, plus 4¢ in the Yukon, NWT and Nunavut) is the benchmark employers use to reimburse staff.

Either way, you need a log showing the date, distance and purpose of each work trip.

2. Which trips count

Driving to a pickup, driving with a passenger or an order, and driving to your next job all count as work. Your normal commute to your first stop or home generally does not. Log every trip, because the ones you forget are money you lose.

3. Other deductions gig drivers miss

  • Phone and data plan, for the share you use for work

  • Parking and tolls on work trips

  • Phone mount, insulated delivery bag and dash cam

  • Car washes and supplies for passengers

  • Platform fees and service charges on your payout statements

  • Home office costs, if you do your admin at home

4. Keep the one record the tax office asks for

A mileage log made at the time of each trip is far stronger than one rebuilt from memory. Fuelshine tracks trips in the background, lets you tag each one as work or personal, and gives you an audit-ready report for the CRA or the IRS. No notebook, no spreadsheet.

FAQ

Can gig workers deduct mileage?

Yes. Self-employed drivers in both the US and Canada can deduct the business use of their vehicle. You need a record of your work trips to support the claim.

What is the 2026 IRS mileage rate for gig drivers?

72.5¢ per business mile for January to June 2026 and 76¢ per mile from July 1, 2026.

How do self-employed drivers claim vehicle costs in Canada?

They add up actual vehicle costs for the year and claim the share that was for work, based on kilometres logged. The CRA per-km rate is mainly the benchmark for employer reimbursement.

What records do I need to keep?

Keep a mileage log with the date, distance and purpose of each work trip, plus receipts for fuel, repairs, insurance, parking, tolls and other costs. Keep them for at least six years in Canada and at least three years in the US.

This is general information, not tax advice. Check your situation with a tax professional.

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