2026 IRS Mileage Deduction Guide — $0.70/Mile Rate
The IRS standard mileage rate for 2026 is $0.70 per business mile. Here is everything you need to know to claim the full deduction and avoid costly mistakes.
2026 IRS Standard Mileage Rates
The IRS sets standard mileage rates annually to simplify deducting vehicle costs. For the 2026 tax year, the rates are:
Business Miles
Per mile driven for business purposes
Medical Miles
Per mile for medical travel
Charity Miles
Per mile for charitable service
The business rate of $0.70 per mile is up from $0.67 in 2025, reflecting increased vehicle operating costs. This rate covers gasoline, depreciation, insurance, registration, repairs, and maintenance — all rolled into one simple per-mile rate.
Who Qualifies for the Mileage Deduction?
You can claim the mileage deduction if you use your personal vehicle for business purposes. This includes:
- Self-employed individuals (freelancers, sole proprietors, independent contractors)
- Small business owners using a personal vehicle for business
- Gig workers (rideshare drivers, delivery drivers)
- Active duty military for certain move-related travel
Important: W-2 employees generally cannot deduct mileage since the Tax Cuts and Jobs Act of 2017 suspended the unreimbursed employee expense deduction through 2025. This suspension has been extended, so W-2 employees should check if their employer offers a mileage reimbursement program instead.
What Counts as a Business Trip?
Client and customer visits
Driving to a client's office for a meeting or to deliver a product.
Business errands
Trips to the post office, bank, or office supply store for business purposes.
Travel between work locations
Driving from your main office to a second work location or job site.
Business-related conferences and events
Driving to industry conferences, networking events, or trade shows.
Temporary work assignment travel
If you have a temporary work assignment (expected to last less than one year) away from your tax home.
Daily commute (home to office)
Your regular commute from home to your primary workplace is never deductible, even if you take calls during the drive.
Personal errands during work day
Stopping at the grocery store or gym between business appointments.
Moving to a new office
The moving expense deduction was eliminated for most taxpayers under the TCJA (except active military).
Standard Mileage vs. Actual Expenses Method
The IRS lets you choose between two methods for deducting vehicle expenses. Here is how they compare:
| Factor | Standard Mileage | Actual Expenses |
|---|---|---|
| When it's better | Lower vehicle costs, newer vehicle, fewer repairs | Expensive vehicle, high maintenance costs, high insurance |
| Record keeping | Mileage log only (date, miles, purpose) | All receipts for gas, insurance, repairs, depreciation, registration, parking, tolls |
| Calculation | $0.70 per business mile driven | (Total vehicle expenses) x (% business use) |
| Simplicity | Very simple — just track miles | Complex — requires tracking every vehicle expense |
| First-year choice | Can switch to actual later (with limits) | Must use actual method in all future years for that vehicle |
Pro Tip: If you are unsure which method to use, calculate both in your first year and choose the larger deduction. Remember — if you choose the actual expenses method in the first year you use a vehicle for business, you must continue using it for that vehicle.
What to Include in Your Mileage Log
The IRS requires a contemporaneous record of your business mileage. That means you need to log trips at or near the time they occur — not reconstruct them at year-end. Your log should include:
| Field | Description | Example |
|---|---|---|
| Date | The date of the trip | 02/12/2026 |
| Starting Location | Where you departed from | Home Office, 123 Main St |
| Destination | Where you drove to | ABC Corp, 456 Oak Ave |
| Business Purpose | Why you made the trip | Client meeting to review Q1 contract |
| Miles Driven | Total miles for this trip | 24.6 miles |
| Odometer (Start/End) | Starting and ending odometer readings | 45,230 / 45,255 |
Real-World Deduction Examples
Here is what the mileage deduction looks like for different types of workers at the 2026 rate of $0.70/mile:
Freelance Consultant
Real Estate Agent
Delivery Driver (Side Gig)
Sales Representative
Common Mileage Deduction Mistakes
- Not keeping a mileage log — Without a contemporaneous log, the IRS can disallow your entire mileage deduction in an audit. Estimates and reconstructions are not acceptable.
- Deducting commuting miles — Your daily commute from home to your primary workplace is never deductible. However, if you have a qualifying home office, trips from home to client sites are business miles.
- Claiming 100% business use — Unless you have a dedicated business vehicle that is never used personally, claiming 100% business use raises a major red flag. Be honest about the split.
- Forgetting parking and tolls — Parking fees and tolls for business trips are deductible in addition to the standard mileage rate. Many people overlook these.
- Double-dipping — If you use the standard mileage rate, you cannot also deduct gas, insurance, or repairs. Those are already baked into the per-mile rate. Parking and tolls are the exceptions.
How ReceiptLyzer Helps with Mileage Tracking
While ReceiptLyzer focuses on receipt scanning and expense tracking, it plays a crucial supporting role in your mileage deduction strategy. Scan your gas receipts, parking receipts, and toll receipts to maintain a complete record of vehicle-related expenses. If you choose the actual expenses method, ReceiptLyzer captures every repair bill, insurance statement, and registration fee automatically.
Combined with a mileage tracking app, ReceiptLyzer gives you a complete picture of your vehicle deduction — whether you choose standard mileage or actual expenses.
Track Every Deductible Mile
ReceiptLyzer captures gas, parking, tolls, and vehicle maintenance receipts automatically. Pair it with your mileage log for a bulletproof deduction. Start free — 25 receipts per month.