Is mileage tax deductible?
Yes — business mileage is deductible. The IRS standard mileage rate for 2026 is 70 cents per mile for business driving. The main questions are what counts as business mileage, whether to use the standard rate or actual expenses, and how to keep the records the IRS requires.
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On this page: Short answer · Who this applies to · 2026 mileage rate · Standard rate vs actual expenses · What qualifies as business mileage · Commuting — not deductible · Schedule C · Example · Records & logbook · Specific lookups · FAQ
Short answer
Yes. Business mileage is tax deductible for self-employed individuals, freelancers, and business owners. Use the IRS standard mileage rate (70¢/mile in 2026) or deduct your actual vehicle costs based on business-use percentage. Commuting between home and your regular workplace is not deductible.
You must choose one method — standard mileage rate or actual expenses — per vehicle per year. You cannot combine both for the same vehicle.
MileIQ — Automatically track and log business mileage for tax deductions
MileIQ runs in the background, automatically logs every drive, and lets you swipe to classify trips as business or personal — generating an IRS-ready mileage report at tax time.
Who this typically applies to
- Freelancers and self-employed individuals driving to client meetings, job sites, or business errands
- Contractors and tradespeople traveling between job locations or to pick up materials
- Small business owners using a personal or business vehicle for sales calls, deliveries, or operations
- Gig workers (rideshare, delivery, on-demand services) — vehicle costs are a primary deduction category
Employees generally cannot deduct unreimbursed mileage under current tax rules. These deductions apply to Schedule C filers and business returns.
IRS standard mileage rate for 2026
The IRS sets a standard mileage rate each year that covers all vehicle operating costs — gas, oil, tires, insurance, maintenance, and depreciation — in a single per-mile rate.
- Business driving: 70 cents per mile
- Medical or moving (for active-duty military): 21 cents per mile
- Charitable driving: 14 cents per mile
The IRS occasionally issues a mid-year rate adjustment. Always verify the current rate at IRS.gov before filing. The rate used here reflects the rate in effect as of April 2026.
Using the standard mileage rate means you do not separately deduct gas, insurance, oil changes, or depreciation for that vehicle. The rate already includes all of those costs.
Standard mileage rate vs actual expenses: Which method is better?
You have two options for deducting vehicle costs. Most self-employed individuals and small businesses use the standard mileage rate for simplicity, but the actual expense method can yield a larger deduction in some situations.
| Factor | Standard mileage rate | Actual expense method |
|---|---|---|
| Calculation | Business miles × 70¢ | Business % × real vehicle costs |
| What it covers | Gas, insurance, depreciation, maintenance — all included | Gas, insurance, repairs, registration, depreciation — tracked separately |
| Recordkeeping | Mileage log only | Mileage log + all vehicle expense receipts |
| Better for | High-mileage drivers, fuel-efficient vehicles, simplicity | Expensive vehicles, high actual costs, low mileage |
| First-year rule | Must use standard rate in year 1 to preserve option to switch | Can use actual in year 1 but cannot switch to standard later for that vehicle |
| Schedule C line | Line 9 (Car and Truck Expenses) | Line 9 (Car and Truck Expenses) |
Important first-year rule: If you use the actual expense method in the first year you use a vehicle for business, you cannot switch to the standard mileage rate for that vehicle in future years. Choosing the standard mileage rate first preserves the option to switch to actual expenses later.
What counts as deductible business mileage
- Driving to meet clients, customers, or business prospects
- Travel between two business locations or job sites
- Driving to pick up business supplies, equipment, or materials
- Travel to a bank, post office, or government office for business purposes
- Driving to business conferences, training, or professional development events
- Trips from a qualifying home office to client locations (home office = principal place of business)
- Commuting from home to your regular office or fixed workplace
- Personal errands combined with or adjacent to business trips (only the business portion counts)
- Driving between home and a job site if home is not your principal place of business
- Trips with no documented business purpose
Why commuting is not deductible — and the home office exception
The IRS considers regular commuting between your home and a fixed workplace to be a personal expense — regardless of how far you drive or how often you work. This rule applies even if you work during the commute.
The home office exception: If your home qualifies as your principal place of business under the home office deduction rules, then trips from home to other business locations — client offices, job sites, meetings — are considered business travel, not commuting, and are fully deductible.
This is one of the most valuable secondary benefits of qualifying for the home office deduction — it converts what would otherwise be non-deductible commuting into deductible business mileage.
Where does mileage go on Schedule C?
Vehicle deductions for self-employed individuals go on Schedule C, Line 9 (Car and Truck Expenses). You must also complete Part IV of Schedule C (Information on Your Vehicle), which asks for total miles driven, business miles, commuting miles, and other miles for the year.
If you use the actual expense method with depreciation, you also file Form 4562. Most tax software completes Part IV and Form 4562 automatically when you enter your vehicle information.
Example: Mileage deduction calculation for 2026
Example: Freelance plumber driving for client work
- Total miles driven in 2026: 18,000
- Business miles (documented in logbook): 12,000
- Personal and commuting miles: 6,000
- Business-use percentage: 67%
- Standard mileage rate method: 12,000 miles × $0.70 = $8,400 deduction
- Actual expense method (example): $14,000 total vehicle costs × 67% = $9,380 deduction
In this example, the actual expense method yields $980 more. At a 22% tax rate, the difference is approximately $216 in tax savings. For lower-cost vehicles or higher mileage, the standard rate often wins. Run both calculations before choosing.
Mileage logbook requirements: What records to keep
The IRS requires contemporaneous records — logs made at or near the time of each trip. Reconstructed logs created at tax time are much weaker if audited.
- Date of each business trip
- Starting and ending location (or starting and ending odometer readings)
- Business purpose — client name, job site, meeting type, or business errand
- Miles driven for each trip
- Total odometer reading at the start and end of the year
- For actual expense method: fuel receipts, insurance statements, maintenance invoices, registration documents
Mileage tracking apps log trips automatically using your phone's GPS and let you swipe to classify each trip as business or personal. Most generate an IRS-ready report at year end. This is significantly more defensible than a manual spreadsheet reconstructed from memory.
TurboTax Self-Employed — Claim mileage and vehicle deductions on Schedule C
TurboTax Self-Employed guides you through the standard mileage vs actual expense comparison, completes Schedule C Part IV automatically, and calculates your Line 9 deduction correctly.
FAQ
Is mileage tax deductible?
Yes, business mileage is tax deductible for self-employed individuals, freelancers, and business owners. The IRS standard mileage rate for 2026 is 70 cents per mile for business driving. Multiply your total business miles by the rate to calculate your deduction. Commuting between home and your regular workplace is not deductible.
What is the IRS mileage rate for 2026?
The IRS standard mileage rate for business driving in 2026 is 70 cents per mile. This rate covers gas, depreciation, insurance, and maintenance — you do not deduct actual vehicle expenses separately when using the standard rate. Always verify the current rate at IRS.gov, as it can be updated mid-year.
Standard mileage rate vs actual expenses: which is better?
The standard mileage rate is simpler — multiply business miles by 70¢ and deduct. The actual expense method deducts the business percentage of real vehicle costs and may yield a larger deduction for expensive vehicles or high actual costs. You must choose the standard mileage rate in the first year you use a vehicle for business to preserve the option to switch to actual expenses later.
Is commuting mileage tax deductible?
No. Commuting between your home and your regular place of business is personal travel and is not deductible. However, if your home qualifies as your principal place of business under the home office deduction rules, trips from home to client locations or job sites are deductible business mileage — not commuting.
Can I deduct mileage and gas on the same return?
No — you must choose one method per vehicle per year. If you use the standard mileage rate, gas is included in the rate and cannot be deducted separately. If you use the actual expense method, you deduct real gas costs but do not apply the mileage rate. You cannot combine both methods for the same vehicle in the same year.
Do I need a mileage logbook to claim mileage?
Yes. The IRS requires contemporaneous records for mileage deductions. Your log should record the date, starting and ending location, business purpose, and miles driven for each trip. Mileage tracking apps automatically log trips and generate IRS-ready reports, which are significantly more defensible than manually reconstructed logs.
Where does mileage go on Schedule C?
Business mileage deductions go on Schedule C, Line 9 (Car and Truck Expenses). You also complete Part IV of Schedule C, which asks for total miles, business miles, and commuting miles for the year. Most tax software handles this automatically when you enter your vehicle information.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: April 14, 2026