Guides & References
IRS Mileage Rates &
Deduction Guide
Deduction Guide
Practical guides for anyone who drives for work and tracks it themselves. 2026 rates, qualifying trips, and how to build a log that holds up.
2026 IRS Rates
Reference
IRS Standard Mileage Rates for 2026
The IRS sets standard mileage rates each year. Using the standard rate is simpler than tracking actual vehicle expenses — you multiply your business miles by the rate and that's your deduction.
The business rate applies to self-employed workers, freelancers, and independent contractors filing Schedule C. W-2 employees generally cannot deduct unreimbursed mileage on federal returns since the 2018 Tax Cuts and Jobs Act — though some states still allow it.
Business driving
$0.76↑ from $0.70 in 2025
Medical & moving
$0.235/mi
Charitable driving
$0.14/mi
Standard rate vs actual expenses: You can only use one method per vehicle per year. The standard rate is simpler and often more valuable — especially for fuel-efficient vehicles.
IRS.gov — Standard Mileage Rates
What Qualifies
Guide
What counts as a deductible business trip?
Not every drive qualifies. The IRS requires that the primary purpose of the trip is business — getting to a client, visiting a job site, attending a work meeting.
Trips that qualify:
- Driving from your office or home base to a client or customer
- Travel between two work locations on the same day
- Job site visits, inspections, or field work
- Business errands — picking up supplies, making deliveries
- Driving to a temporary work location (not your regular office)
- Commuting — driving from home to your regular office is never deductible
- Personal errands, even on a day you also drove for work
- Drives with no business purpose you can document
The commuting rule: If you work from home and your home is your principal place of business, trips from home to clients or job sites generally qualify. But if you have a separate regular office, the drive there and back is commuting — not deductible.
IRS Publication 463 — Travel, Gift, and Car Expenses
Record Keeping
Guide
How to build an IRS-ready mileage log
The IRS requires a contemporaneous mileage log — meaning you record trips at or near the time they happen, not at the end of the year from memory. Each entry needs five things:
Why "contemporaneous" matters: In an audit, a log assembled after the fact is easy to challenge. One built trip-by-trip throughout the year — with timestamps — is much harder to dispute.
GPS is not required. The IRS does not mandate GPS tracking. A written or digital log with the five required fields is sufficient. Apps that track your every move are collecting more data than the IRS actually needs.
DateWhen the trip occurred
Starting pointWhere you departed from
DestinationWhere you went
Business purposeWhy the trip was work-related
Miles drivenTotal for the trip
Keep records for at least 3 years from the date you file — that's the standard window, though the IRS can look back further if they suspect substantial underreporting. FuelMath exports your log to PDF or CSV so you can archive it anywhere.
Common questions
Can I deduct mileage if I'm a gig worker or contractor?▼
Yes — this is one of the most valuable deductions available to self-employed workers. If you receive a 1099 and drive for work, you can deduct business mileage on Schedule C. Rideshare drivers, delivery workers, freelancers, consultants, and independent contractors all qualify. The rate is $0.76/mile from July 1, 2026 ($0.725/mile for trips Jan–Jun 2026). This report is for informational purposes — consult a tax professional for advice specific to your situation.
What if my employer reimburses me — do I still deduct?▼
If your employer reimburses you at or above the IRS rate, you generally can't also deduct the mileage — you'd be double-dipping. If they reimburse below the IRS rate, you may be able to deduct the difference. If you're self-employed and pay yourself reimbursement through your business, that's a business expense — different situation. Consult a tax professional for advice specific to your situation.
I'm a nanny or home health aide — can I deduct my driving?▼
It depends on how you're classified. If you're an independent contractor (1099), driving between clients or to job sites is generally deductible as a business expense on Schedule C. Many in-home caregivers, nannies, and private-duty aides work this way. If you're a household employee (W-2) — meaning your employer withholds taxes from your pay — the rules are different. You generally can't deduct unreimbursed work mileage on your federal return under current tax law, though your employer can reimburse you tax-free up to the IRS rate. Either way, tracking every work-related drive is worth doing. If your employer doesn't currently reimburse mileage, a clear record makes it easy to ask. This report is for informational purposes — consult a tax professional for advice specific to your situation.
What happens if I get audited?▼
The IRS will ask for your mileage log. If you have a contemporaneous record with dates, destinations, purposes, and miles — you're in good shape. If you reconstructed it from memory, you're vulnerable. The best audit defense is a log kept in real time, trip by trip — not reconstructed later. This report is for informational purposes — consult a tax professional for advice specific to your situation.
Standard mileage rate vs. actual expenses — which is better?▼
You can only use one method per vehicle per year. The standard rate ($0.76/mi from July 1, 2026) is simpler — you multiply miles by the rate, done. Actual expenses means tracking gas, insurance, depreciation, repairs, and prorating the business-use percentage. The standard rate is often more advantageous for fuel-efficient vehicles or high-mileage drivers, but actual expenses can win if you drive an expensive vehicle with high operating costs. Consult a tax professional to run the comparison for your situation.
More resources coming soon
Deductible business expenses beyond mileage
Meals, travel, supplies, home office, and more
Soon
Mileage tracking for real estate agents
Showings, open houses, and client drives
Soon
Mileage tracking for gig & delivery workers
Rideshare, delivery, and on-demand driving
Soon
Not legal or tax advice. The information on this page is for general educational purposes only and reflects our understanding of current IRS guidance. Tax rules change, and individual situations vary. Nothing here constitutes legal, tax, or financial advice. Always consult a qualified tax professional for guidance specific to your situation.