IRS mileage deduction rates and rules for 2026
Summary
Sources: IRS standard mileage rate announcements (typically late each year), Publication 463.
Educational only — not tax, legal, or investment advice. Confirm rates, thresholds, and forms with IRS.gov and a licensed CPA or enrolled agent for your facts.
Freelancers who drive for client visits, supply runs, or between job sites may deduct vehicle costs via the standard mileage rate or the actual expense method. The IRS publishes updated rates annually—confirm the 2026 business rate on IRS.gov before filing.
1. Rate categories (structure)
| Purpose | Typical IRS treatment |
|---|---|
| Business | Highest standard rate—Schedule C |
| Medical | Lower rate—itemized medical expenses subject to AGI floor |
| Charitable | Separate statutory rate |
| Moving (military) | Limited post-TCJA for most taxpayers |
Business rates historically adjust for fuel and operating costs. Do not use prior-year rates for a current return without verification.
2. Standard mileage method
Multiply business miles by the IRS standard rate. You cannot also deduct depreciation, gas, or insurance on that vehicle for business miles. Parking and tolls may still be separate.
3. Actual expense method
Track all costs: gas, oil, repairs, insurance, registration, lease payments, depreciation. Multiply by business-use percentage from a mileage log. Often better for heavy-use vehicles with low standard-rate economics.
4. Example
Consultant drives 6,000 business miles in 2026. If IRS business rate were 70 cents (illustrative only):
6,000 × $0.70 = $4,200 deduction on Schedule C, plus $400 parking/tolls.
| Method | Miles | Result (illustrative) |
|---|---|---|
| Standard | 6,000 | Rate × miles |
| Actual (60% business) | 10,000 total | 60% of $7,000 costs = $4,200 |
5. Non-deductible miles
- Home to regular office (commuting).
- Personal errands appended to a business trip without primary business purpose.
- Fines and traffic tickets.
6. Switching methods
Leased vehicles and depreciation elections have restrictions on switching from actual to standard. Read Publication 463 before first-year choices.
7. Gig and delivery workers
Platform drivers still need mileage logs separating business and personal use. A 1099-K or 1099-NEC does not replace substantiation.
Official sources
Download the official rate PDF each January. Round trips count both directions when business purpose is documented.
FAQ
Can I deduct commuting miles?
Generally no. Travel from home to your regular workplace is commuting, not deductible business mileage.
Standard mileage or actual expenses?
You may choose standard mileage for owned or leased vehicles if requirements are met, or actual expenses (gas, depreciation, insurance) with allocation.
What log is required?
Contemporaneous records: date, miles, destination, business purpose. Apps help, but IRS expects substantiation on audit.