What business expenses can I deduct as a gig worker under 2026 IRS rules?

As a gig worker, you can deduct any expense the IRS considers ordinary and necessary for your work — vehicle mileage, supplies, the business share of your phone bill, a qualifying home office, and platform or professional fees. You report these on Schedule C, where they directly lower both your income tax and your self-employment tax. Personal costs, and commuting from home to a regular workplace, are not deductible.

The governing standard is set by the IRS: an ordinary expense is "one that is common and accepted in your industry," and a necessary expense is "one that is helpful and appropriate for your trade or business" (IRS Interactive Tax Assistant). An expense must be both ordinary and necessary to be deductible. The U.S. Small Business Administration restates the same rule: the law provides for the full deductibility of ordinary and necessary business expenses (SBA).

Common deductible categories

Vehicle. If you drive for rideshare, delivery, or to job sites, you can deduct car costs using either the standard mileage rate or actual expenses. For 2026, the IRS standard mileage rate for business use is 72.5 cents per mile, effective 01/01/2026 (IRS). Parking fees and tolls attributable to business use are separately deductible whether you use the standard rate or actual expenses, and to use the standard mileage rate on a car you own you must choose it in the first year the car is available for business (IRS Topic 510). If you also drive the car personally, deduct only the business-use share.

Supplies. General supplies and materials used in your work — and postage — are deductible business expenses on Schedule C (IRS Schedule C instructions). For a delivery or rideshare driver that can include items like delivery bags, phone mounts, and safety gear (Gridwise).

Phone. Your cell phone is usually a mixed-use expense, so you deduct only the business-use percentage of the bill — not the whole thing (Gridwise). Keep a reasonable basis for the percentage you claim. For more on documentation, see how to track business expenses.

Home office. If you use part of your home regularly and exclusively for business, you can claim the home office deduction (TurboTax). The IRS simplified method lets you deduct $5 per square foot up to 300 square feet — a maximum of $1,500 per year (IRS); the actual-expense method prorates rent, utilities, and insurance instead. See our home office deduction rules for the full criteria.

Fees. Platform commissions, payment-processing fees, and ordinary-and-necessary fees charged by accountants and attorneys are deductible (IRS Schedule C instructions).

What is not deductible

Personal, living, and family costs never qualify. Commuting from your home to a regular work location is treated as personal and is not deductible. Everyday clothing that is suitable for street wear is not deductible even if you only wear it for work. And for any expense that mixes business and personal use — your car, phone, or home — you may deduct only the portion attributable to the business. Keep receipts and a contemporaneous log; the IRS expects gig workers to substantiate every deduction (IRS gig work guidance). For the broader list, browse our freelancer tax write-offs guide.

Sources

• IRS — Ordinary and Necessary (Interactive Tax Assistant)
• IRS — 2026 business standard mileage rate (72.5 cents)
• IRS — Topic No. 510, Business use of car
• IRS — Instructions for Schedule C (Form 1040)
• IRS — Simplified option for home office deduction
• IRS — Manage taxes for your gig work
• U.S. Small Business Administration — Business expenses and tax deductions
• Gridwise — Tax deductions for gig workers (2026)
• TurboTax — Top tax write-offs for the self-employed