If you drive for your business, the miles add up fast. For 2026 the IRS lets you deduct business driving at 72.5 cents per mile — but only if you follow the rules on what counts, how to track it, and which method you use.
The 2026 standard mileage rate
The IRS set the optional standard mileage rate for business use at 72.5 cents per mile for 2026, a 2.5-cent increase from 2025 (IRS Notice 2026-10, released Dec. 29, 2025). The same announcement set medical and moving use at 20.5 cents per mile and charitable use at 14 cents per mile. The rate applies to cars, vans, pickups, and panel trucks, including electric and hybrid vehicles.
A simple example: 10,000 business miles in 2026 × $0.725 = $7,250 of deduction using the standard method. Because the rate already bakes in fuel, maintenance, insurance, and depreciation, you do not add those separately under the standard method.
Standard method vs actual expenses
You have two ways to deduct vehicle costs. The standard mileage method multiplies business miles by the IRS rate — easiest, and usually best for lighter driving in a newer car. The actual-expense method totals gas, oil, repairs, tires, insurance, registration, and depreciation (or lease payments), then multiplies by your business-use percentage. A high-mileage year or an older paid-off vehicle often favors actual expenses.
Key rule: you must choose a method in the first year the vehicle is available for business use. For a vehicle you own, you can switch later; for a leased vehicle, you must use the standard rate for the whole lease period. Run both with the Tax Deduction Finder before you commit.
What miles actually count
Only miles driven for a business purpose are deductible: client and job-site visits, business errands, trips to the bank or supplier, and airport runs for business travel. Commuting between your home and a regular office does not count, even if you think about work on the way. Driving from a home office to a client, however, is business mileage.
- Keep a log with the date, starting and ending odometer (or miles), and business purpose.
- Apps that auto-track trips are acceptable if they record the required detail.
- "I probably drove about that much" will not hold up in an audit — contemporaneous records matter.
Who can claim it
Self-employed individuals and businesses that own or lease a vehicle for business use can take the mileage deduction on Schedule C (or the equivalent). Employees generally cannot deduct unreimbursed business mileage under current law, with narrow exceptions for certain reservists, qualified state or local officials, and eligible educators. If a client reimburses you for mileage, you generally do not also deduct it.
Frequently Asked Questions
What is the 2026 IRS standard mileage rate?
The optional standard mileage rate for business driving is 72.5 cents per mile for 2026, up 2.5 cents from 2025. The rate is set annually by the IRS (Notice 2026-10). Medical and moving use is 20.5 cents per mile, and charitable use is 14 cents per mile.
Who can use the business mileage deduction?
Self-employed individuals and businesses that own or lease a vehicle used for business. Employees generally cannot deduct unreimbursed business mileage under current law, except for certain reservists, state or local officials, and eligible educators with specific circumstances.
What miles count as business miles?
Miles driven for a business purpose: client visits, job sites, business errands, and bank or supply trips. Commuting between your home and a regular workplace does not count. Track the date, miles, and business purpose for each trip.
Standard mileage or actual expenses — which is better?
The standard method multiplies business miles by the IRS rate and is simplest. The actual-expense method tallies gas, repairs, insurance, depreciation, and lease payments, then applies the business-use percentage. Higher-mileage or older vehicles often do better with actual expenses; compare both before choosing, and note you must pick a method in the first year the vehicle is available for business use.
Take action in 2026
Start a mileage log today — even a simple notes app entry per trip is enough. At year end, compare the standard and actual methods with the Tax Deduction Finder and keep your log with your tax records.