DoorDash says you made $800 this week. But after gas, miles, car wear, and taxes — what did you actually make? Let's find out.
Delivery drivers can deduct business mileage (70¢/mile in 2025), phone costs (business-use percentage), insulated bags and gear, and other directly related business expenses. You cannot use the standard mileage rate and also deduct actual gas and depreciation — choose one method.
The IRS standard mileage rate of 70¢/mile (2025) already accounts for depreciation, gas, oil, and maintenance combined. If using actual expenses, typical vehicle depreciation for a delivery car runs $0.08–$0.15 per mile depending on vehicle value and annual mileage.
Yes. As an independent contractor, you pay SE tax of 15.3% on net earnings (up to the Social Security wage base). You can deduct half of your SE tax on your income tax return. This is separate from income tax.
After mileage, SE tax, and waiting time, most delivery drivers net $10–$18/hour in typical markets. High-demand urban areas during peak hours can exceed $20/hour. The key variable is miles driven per hour — fewer miles means higher net pay.
Sources: IRS Publication 463 (Travel & Vehicle Expenses), IRS 2025 Mileage Rate, IRS Schedule SE. Last updated March 2026.