How to Track Mileage and Expenses as a Delivery Driver
If you're working as a delivery driver or courier, one of the smartest things you can do is track your mileage and expenses. Why? Because the IRS allows self-employed drivers to deduct driving-related costs, and those deductions can add up to thousands of dollars saved at tax time.
In this guide, we’ll walk through the why, what, and how of tracking your business miles and expenses — including the best apps and tips to make it easy.
Why Mileage Tracking Matters
As an independent contractor, you don’t get reimbursed for gas, maintenance, or wear and tear. But you can deduct your vehicle expenses on your taxes — if you keep accurate records.
There are two methods:
Standard Mileage Deduction
Multiply your business miles by the IRS rate ($0.67 per mile for 2024).Actual Expense Method
Deduct a percentage of your actual car expenses (fuel, maintenance, insurance, etc.).
Most gig drivers use the standard mileage method because it’s simpler and often results in a bigger deduction.
What Counts as Business Mileage?
You can deduct mileage for:
Driving from your home to your first delivery pickup
Driving between stops on a delivery route
Returning home from your last delivery of the day
Trips to buy supplies, meet clients, or get your car serviced (if work-related)
You cannot deduct:
Commuting to a regular office job
Personal errands or mixed-use trips (unless you log only the business portion)
What About Other Expenses?
You can also track and deduct other work-related costs:
Gas and oil
Maintenance and repairs
Vehicle insurance (business portion)
Parking fees and tolls
Car washes (if related to your delivery job)
Phone plan (if used for dispatch/navigation)
Hot bags, dolly, or courier gear
Keep receipts and digital records for everything.
Best Apps for Mileage and Expense Tracking
Here are three top-rated apps for self-employed drivers:
1. Stride
Free
Automatic GPS mileage tracking
Tracks expenses and calculates tax estimates
Easy to export reports for tax filing
2. Everlance
Automatic tracking
Syncs with bank accounts for expense logging
Has both free and paid versions
Great for freelancers and gig workers
3. MileIQ
Very accurate GPS mileage tracking
Swipe to categorize drives as “personal” or “business”
Simple interface
Free up to 40 drives/month (paid after that)
Whichever app you choose, consistency is key. Start tracking from day one, and let the app handle the math.
How to Stay Organized
Track mileage daily, not just at tax time
Use a separate checking account or debit card for work-related expenses
Download monthly reports from your app and store them in a Google Drive or Dropbox folder
Save receipts and invoices in a dedicated tax folder
Back everything up in case of an audit
What You’ll Need at Tax Time
When it's time to file your taxes or send info to your accountant, you should have:
Total annual business mileage
Mileage logs (or app reports)
Receipts for any additional expenses
Summary of income from all platforms
1099s or earnings reports
Final Thoughts
If you're a self-employed courier or delivery driver, mileage and expense tracking isn’t optional — it’s essential. A few minutes a day can save you thousands in taxes, and set you up for long-term success as an independent contractor.
Start simple. Use a tracking app, stay consistent, and treat your work like a real business — because it is.
