The 2026 business mileage rate is $0.70 per mile. Here is exactly which trips qualify, how to track them properly, and what the deduction is actually worth to you.
The IRS standard mileage rate is not an arbitrary number. Each year the IRS calculates the average cost of operating a vehicle in the United States — factoring in fuel, depreciation, insurance, maintenance, tires, and registration fees — and sets the rate to approximate that cost per mile. For 2026, the IRS determined that $0.70 per mile reflects the average cost of business vehicle operation.
When you claim the mileage deduction, you are not just deducting gas. You are deducting a proportional share of your entire vehicle's operating cost — which is why the rate is so much higher than the cost of fuel alone.
| Year | Business rate | Medical rate | Charity rate |
|---|---|---|---|
| 2026 | $0.70/mile | $0.21/mile | $0.14/mile |
| 2025 | $0.70/mile | $0.21/mile | $0.14/mile |
| 2024 | $0.67/mile | $0.21/mile | $0.14/mile |
| 2023 | $0.655/mile | $0.22/mile | $0.14/mile |
| 2022 (H2) | $0.625/mile | $0.22/mile | $0.14/mile |
The charity rate of $0.14 has been set by statute since 1998 and does not adjust for inflation — a long-running frustration for volunteer drivers.
Not every mile you drive for work-related reasons qualifies. The rules are specific.
If you have a qualifying home office (used exclusively and regularly for business), your home becomes your principal place of business. This changes the commute rules significantly: driving from your home to a client site, vendor, or any business location is a deductible business trip — not a commute. This is one of the most valuable, least-used tax planning opportunities for freelancers who work from home.
The value of the deduction depends on your tax bracket. Here is what 1,000 business miles saves different taxpayers in 2026:
| Federal bracket | 1,000 miles deduction | Tax saved (federal only) |
|---|---|---|
| 12% | $700 | $84 |
| 22% | $700 | $154 |
| 24% | $700 | $168 |
| 32% | $700 | $224 |
Add your state income tax rate to get the total savings. A freelancer in California in the 22% federal bracket saves $154 (federal) + $65 (California 9.3%) = $219 per 1,000 business miles. Drive 10,000 business miles per year and you save $2,190.
The IRS requires what they call "contemporaneous records" — meaning you must record the mileage at or near the time of each trip. Reconstructing your mileage from memory months later is explicitly not acceptable and will be rejected in an audit.
A valid mileage log must include for each trip:
You also need to record your odometer reading at the start and end of each calendar year to establish total annual mileage.
Use a dedicated mileage tracking app. MileIQ, Everlance, and Stride all automatically detect when you are driving using your phone's GPS and log each trip. You swipe left for personal, right for business. At year end you export a compliant report. The apps cost $5–10 per month — negligible compared to the deductions they capture.
If you prefer manual logging, a simple spreadsheet or even a small notebook in the car works. What matters is consistency and contemporaneousness.
You have a choice between two deduction methods. You must choose one and generally stick with it for the life of that vehicle.
Multiply your business miles by $0.70. Done. No tracking of individual gas receipts, insurance bills, or maintenance costs. This method works well for most people, especially if you drive a fuel-efficient vehicle.
Calculate the total actual cost of operating your vehicle for the year — fuel, oil changes, repairs, insurance, registration, and depreciation — and multiply by the percentage of miles that were business miles. If your car cost $8,000 to run and 60% of your miles were business miles, you deduct $4,800.
This method requires keeping every receipt and tends to be more valuable for high-cost vehicles (trucks, luxury cars, EVs with high lease payments) or high-mileage drivers with proportionally lower depreciation per mile.
Important: if you use the actual expense method in year one, you generally cannot switch to the standard mileage rate for that vehicle in future years. The standard mileage rate allows switching in either direction.
If your employer reimburses you for business mileage at or below the IRS rate, those reimbursements are not taxable income. You receive the money tax-free and cannot also claim a deduction for the same miles.
If your employer reimburses you at less than $0.70 per mile, you can deduct the difference on Schedule A (if you itemize) — but only if you are an employee subject to specific conditions. Most employees cannot deduct unreimbursed business expenses at the federal level after the 2017 tax law changes. Self-employed individuals on Schedule C are not affected by this limitation.
Sources: IRS Rev. Proc. 2026-01, IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Rev. Proc. 2010-51 (standard mileage rate rules). This article is for informational purposes only and does not constitute tax advice.