Lyft Mileage: Your Guide to Tracking Drives
Key Points
Lyft drivers are self-employed as independent contractors, which means they can deduct business mileage on taxes.
That means every drive you complete for Lyft is savings on your tax bill. Make sure to track each and every one, since these deductions often add up thousands of dollars.
To get maximum accuracy and consistent records, use another mileage tracker outside the Lyft app, in case you ever stop driving for them but still need your mileage for an IRS audit.
Why track miles as a Lyft driver
Lyft drivers are independent contractors, which means higher taxes (you'll need to pay income tax, the 15.3% self-employment tax, plus any relevant state and local taxes).
That means every bit you can save in tax deductions counts. (Deductions lower your taxable income, and business expenses are deductible.)
As a Lyft driver, mileage will likely be your biggest expense and get you the best deduction, especially if you drive for another rideshare app.
Just by tracking your drive can net you thousands of dollars in tax savings (depending on how much you drive).
Which drives count as business for Lyft
Drives that are completed for business with Lyft (or any other rideshare app) count toward deductions:
- Driving to pick up a passenger
- Taking a passenger to their destination
- Driving while online and awaiting Lyft requests
- Driving to an inspection required by Lyft
- Supply runs to buy things for your rideshare business (air fresheners, water bottles, etc)
- Trips to car washes or a mechanic, if you only use the car for Lyft
Certain drives are not deductible, including:
- First drive of the day: The drive from home to your first pick-up counts as a commute drive
- Last drive of the day: Your last Lyft drive of the day counts as a commute drive too
The IRS considers these a personal expense, so you can't deduct them.
Personal trips or errands: Trips in between Lyft work, as well as other personal drives can't be deducted.
Any drive that's not directly related to your rideshare business is likely not deductible. Be sure to keep these personal drives out of your mileage logs to avoid problems with the IRS.
How to track Lyft mileage
There are two ways to track your business mileage for the IRS. You'll need to use one or the other to fill out your Schedule C form.
Standard mileage method
With the standard mileage method, you only need to worry about tracking business mileage.
Once you're ready to file taxes, multiply the number of business miles by the government mileage rate (70 cents for 2025) to calculate your deduction amount. Simple.
Actual expenses method
To use the actual expenses method you'll need to track mileage, plus other vehicle-related expenses for the year (fuel, maintenance, repairs, insurance).
After that you'll need to calculate the business use percentage of your vehicle (how often you use your vehicle for Lyft and other gig work) and multiply your expenses by this percentage to get a deduction number.
It can be very challenging to objectively figure out a business use percentage if you use your personal car for Lyft, which is why many drivers stick to the standard method.
Note: If you decide on the actual expenses method in your first year of reporting expenses, you'll have to keep using it for that specific vehicle without being able to switch.
Mileage deductions tips for Lyft
To get the maximum savings and increase your chances of the deduction being accepted, follow these tips:
- Stick to one mileage tracking method for each vehicle
- Record drives as they happen, not after the fact or when you're being audited
- Note down dates, addresses, location names, and total mileage for each drive
- Log drives consistently, try not to miss drives or add them to your log sporadically
- Keep personal drives out of business mileage records
If this is starting to sound like a lot of additional work, you're right. Lyft drivers often deal with all of this unwelcome admin work by getting a separate mileage app. For example, MileIQ tracks your drives automatically and generates reports with a tap, no spreadsheets needed.
Other expenses Lyft drivers can deduct
Some things can be deducted separately, no matter which mileage tracking method you use (standard mileage or actual expenses):
- Parking fees incurred while driving for Lyft
- Tolls paid while driving for Lyft (picking up or dropping off a passenger)
If you drive with MileIQ, you can add these expenses to your mileage records. They will show up in your mileage report at the end of the year, making filing super easy.
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