How Tax Deductions Work for Taxi Drivers
Taxi drivers may personally pay for fuel, vehicle servicing, commercial insurance, cleaning, booking fees, passenger supplies, phone use and other costs associated with providing taxi services.
The deductions available will depend on whether you work as an employee, lease a taxi, operate as a sole trader or run your own taxi business.
To claim an expense, it generally needs to be directly connected to earning your taxi income, paid by you without reimbursement and supported by appropriate records. This 2026 guide explains the main tax deductions taxi drivers may be able to claim in Australia.
Taxi Drivers in Australia: Employment Overview
- Average weekly pay: $1,092.50
- Employment size: 57,645
- Future growth: Very Strong
- Skill level: Certificate II or III
Typical tax deductions include:
- Motor vehicle travel between work sites or for training purposes.
- Taxi operating costs including interest, lease payments, depreciation, repairs, fuel, cleaning and insurance.
- Computers, tools and equipment – includes fridge, GPS, and vehicle maintenance tools.
- Consumables for passengers including drinks, sweets, newspapers, and magazines.
- Union fees, licences, registrations and subscriptions.
- Phone and internet – work %.
- Medical checkup and drug testing fees.
- Compulsory work uniform branded with the employers logo.
- Courses, seminars and self-education expenses.
- Client gifts brought for work purposes as entitled to receive commission income – includes gift vouchers, bottle of wine, flowers, hamper, etc.
- Home office running expenses.
Professional memberships.
Non-deductible expenses:
- Speeding and parking fines.
- Taxi driving course.
Tax Strategies we can assist you with.
- Computers, tools, equipment and other assets
- Compulsory work uniform
- Logbook for motor vehicles
- Gifts to clients, suppliers and contractors
- Union fees, licences, registrations and subscriptions
- Phone and internet
- Home office running expenses
Click here to see Tax Calculator for Taxi Drivers.
Taxi Driver Tax Deduction FAQs
Q1: What can taxi drivers claim on tax in 2026?
Taxi drivers may be able to claim eligible fuel, vehicle servicing, insurance, cleaning, booking fees, passenger supplies, work equipment and the business-use portion of phone expenses.
Q2: Can taxi drivers claim fuel and vehicle expenses?
The business-use portion of fuel, registration, insurance, repairs, tyres, cleaning and other eligible vehicle costs may be deductible. Private use must be excluded.
Q3: Do taxi drivers have to register for GST?
Yes. A person carrying on a taxi-service enterprise must generally register for GST regardless of turnover.
Q4: Can taxi drivers claim their driver’s licence?
No. Obtaining or renewing a standard private driver’s licence is generally considered a private expense. Taxi-specific accreditation renewal may receive different treatment.
Q5: Can taxi drivers claim taxi booking and network fees?
Booking commissions, dispatch fees, network charges and payment-processing expenses may be deductible when directly connected to earning taxi income.
Last updated: 14 July 2026
