Mileage deduction 2026: IRS rate, rules & how to track

If you drive for work — rideshare, real estate, sales, freelancing — every mile is potentially a tax deduction. Here's what you need to know about the 2026 IRS standard mileage rate, who can claim it, and how to track it without losing your mind.

What's the 2026 IRS standard mileage rate?

The IRS sets a standard rate per business mile each year. Always confirm the current year's rate on the IRS website — it adjusts annually based on fuel and operating costs. For 2024 it was 67 ¢/mi; 2025 was 70 ¢/mi. Check the official IRS page for the 2026 figure before filing.

Who can deduct mileage?

• Self-employed people (sole proprietors, freelancers, gig workers)
• Small business owners using a personal vehicle
• Some active-duty military and qualified performing artists (special rules)

W-2 employees generally can't deduct unreimbursed mileage on federal taxes — that changed in 2018.

Standard rate vs actual expenses

You can either use the standard rate (simple — miles × rate) or deduct actual expenses (gas, oil, repairs, depreciation, insurance × business-use %). Standard rate is easier; actual expenses can be larger if you drive an expensive or thirsty vehicle. Pick one method when you put the car into service.

What counts as a business mile?

• Driving between job sites or client meetings ✅
• Trips to the bank, supplier, or office supply store ✅
• Driving from home to your regular workplace ❌ (commuting)
• Personal errands sandwiched into a business trip ❌ (only the business portion)

What the IRS wants if audited

• Date of trip
• Destination and purpose
• Starting and ending odometer (or miles)
• Total business miles for the year

A weekly log beats a year-end guess. The whole point of a tracking app is making it a 5-second habit.

The deduction only holds up with a contemporaneous log; compare the best free mileage tracker apps to keep one without paper.