Is mileage tax deductible?
Yes — business mileage can be deductible. For 2026, the IRS business mileage rate is 72.5¢ per mile for January–June and 76¢ per mile for July–December. You can also use the actual expense method when the rules allow it. Ordinary commuting is not deductible.
U.S. federal tax rules · Updated August 18, 2026
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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 when the driving is for the business. In 2026, use 72.5¢ per mile for January–June and 76¢ per mile for July–December, or use the actual expense method. Ordinary commuting between home and a regular workplace is not deductible.
Do not deduct the standard mileage rate and actual operating costs for the same vehicle and period. Business parking fees and tolls can generally be separate deductions.
Who this typically applies to
- Self-employed individuals, freelancers and sole proprietors driving for business
- Contractors and tradespeople traveling between job locations or making business supply runs
- Small business owners using a vehicle for sales calls, deliveries or operations
- Gig workers using a vehicle for rideshare, delivery or on-demand work
Most W-2 employees cannot deduct unreimbursed mileage on their federal return. A few exceptions still exist, including certain Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses.
IRS standard mileage rate for 2026
The IRS sets a standard mileage rate that covers vehicle costs such as gas, maintenance, insurance, and depreciation in one per-mile amount. For 2026, there are two business rates because the IRS increased the rate on July 1.
| Purpose | Jan. 1–Jun. 30 | Jul. 1–Dec. 31 |
|---|---|---|
| Business | 72.5¢/mile | 76¢/mile |
| Medical / certain military moving | 20.5¢/mile | 23.5¢/mile |
| Charitable service | 14¢/mile | 14¢/mile |
For detailed rate history and split-year examples, use the 2026 IRS mileage rate page.
Under the standard business mileage method, the rate substitutes for depreciation or lease payments and most operating costs such as gas, maintenance, repairs and insurance. Business parking fees and tolls are generally deductible separately.
Standard mileage rate vs actual expenses: Which method is better?
You have two basic ways to deduct business vehicle costs. The standard mileage rate is simpler. The actual expense method can produce a larger deduction when your real vehicle costs are high.
| Factor | Standard mileage rate | Actual expense method |
|---|---|---|
| Calculation | Business miles × rate in effect when driven | Business-use % × allowable actual costs |
| 2026 rate | 72.5¢ Jan–Jun; 76¢ Jul–Dec | No fixed per-mile rate |
| Operating costs | Most operating/fixed vehicle costs included | Gas, insurance, repairs, registration and other allowable costs tracked separately |
| Depreciation / lease | Included in standard rate; not separately deducted | Depreciation and lease costs handled separately |
| Recordkeeping | Business-use/mileage records | Business-use records plus supporting expense documents |
| Owned vehicle method choice | Use standard mileage in the first business-use year to preserve the option to use it in later years | Certain depreciation choices can prevent later use of standard mileage |
For a leased vehicle, choosing standard mileage generally means using that method for the entire lease period, including renewals.
MileIQ — Automatically track drives and organize business mileage records
MileIQ can detect drives automatically and lets you classify trips as business or personal, then export mileage reports. Review trip classifications and business-purpose details before relying on a report for tax records.
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 home office that is your principal place of business to client locations
- 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.
If your home is your principal place of business, one important benefit is that it can convert what would otherwise be non-deductible commuting into deductible business mileage.
Where does mileage go on Schedule C?
If you use the standard mileage method as a sole proprietor, report the mileage deduction on Schedule C, Line 9 (Car and Truck Expenses). Business parking fees and tolls can generally be added separately.
Under the actual method, operating costs such as gasoline, repairs, insurance and license fees are generally included on Line 9, while vehicle depreciation is reported on Line 13 and vehicle rent or lease payments on Line 20a. Depending on the method and vehicle, Schedule C Part IV or Form 4562 Part V supplies the supporting vehicle information.
Example: Mileage deduction calculation for 2026
Example: 12,000 documented business miles, split evenly across 2026
- 6,000 miles driven Jan–Jun × $0.725 = $4,350
- 6,000 miles driven Jul–Dec × $0.76 = $4,560
- Total standard-mileage amount: $8,910, before any separately deductible business parking fees or tolls
Actual-expense comparison: If allowable annual vehicle costs were $14,000 and business use were 67%, the preliminary business portion would be $9,380, subject to the rules for each expense and depreciation limits.
Do not average 72.5¢ and 76¢ into one annual rate. Apply the rate that was in effect when the business miles were driven.
Mileage logbook requirements: What records to keep
Keep mileage records as you go. IRS Publication 463 says records made at or near the time of the trip carry more weight, and a weekly log can still count as timely.
- Date of the business trip
- Destination or place of travel
- Business purpose, unless it is clear from the surrounding circumstances
- Business miles or other evidence of the amount of vehicle use
- Annual vehicle totals and business-use information needed for Schedule C/Form 4562
- For the actual method: receipts or other support for operating costs, lease costs and depreciation basis
A mileage app can help capture drives and produce reports, but you still need to mark trips as business or personal and add the business purpose when needed.
TurboTax — Report self-employed mileage and vehicle expenses on Schedule C
TurboTax supports Schedule C vehicle reporting and can guide self-employed filers through mileage and vehicle-expense entries. Verify the final method, rates and records against your tax situation.
FAQ
Is mileage tax deductible?
Yes. Business mileage can be tax deductible for self-employed individuals, freelancers, and business owners. For 2026, the business rate is 72.5¢ per mile for January–June and 76¢ per mile for July–December. Ordinary commuting is not deductible.
What is the IRS mileage rate for 2026?
For business driving, use 72.5¢ per mile for January 1–June 30 and 76¢ per mile for July 1–December 31. The medical and certain military-moving rate is 20.5¢ then 23.5¢. The charitable rate stays 14¢ all year.
Standard mileage rate vs actual expenses: which is better?
It depends on your vehicle and business use. Standard mileage is simpler and uses the rate in effect when the miles were driven. The actual method uses the business portion of allowable vehicle costs and may be higher when actual costs or allowable depreciation are high.
Is commuting mileage tax deductible?
Generally no. Driving between home and your regular workplace is commuting and is normally personal. If your home qualifies as your principal place of business, trips from that home office to clients or other business locations may count as business mileage.
Can I deduct mileage and gas on the same return?
Not for the same vehicle period under the standard mileage method. The standard rate substitutes for gas and most other operating costs. Business parking fees and tolls are generally separate deductions.
Do I need a mileage logbook to claim mileage?
You need records showing your business driving. Keep the date, destination, business purpose, and miles driven. IRS Publication 463 says records made at or near the time of the trip carry more weight, and a weekly log can still count as timely.
Where does mileage go on Schedule C?
If you use standard mileage as a sole proprietor, the mileage deduction generally goes on Schedule C, Line 9. Under the actual method, operating costs generally go on Line 9, depreciation on Line 13, and vehicle rent or lease payments on Line 20a.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: August 18, 2026