The IRS sets standard mileage rates that allow employees and self-employed individuals to deduct or be reimbursed for the cost of using a personal vehicle for qualifying purposes. These rates are updated annually and are designed to reflect the actual cost of operating a vehicle — including fuel, depreciation, insurance, and maintenance.
For 2026, the rates are:
| Purpose | Rate per mile | Who can use it |
|---|---|---|
| Business | $0.70/mile | Employees, self-employed, business owners |
| Medical / Moving | $0.21/mile | Qualifying medical trips; active duty military for moving |
| Charitable service | $0.14/mile | Volunteer work for qualified charitable organizations |
The business mileage rate applies to miles driven for legitimate business purposes — driving to client meetings, visiting job sites, traveling between work locations, or running business errands. It does not apply to your regular commute from home to your primary workplace.
Self-employed individuals can deduct business mileage on Schedule C. Employees can only deduct unreimbursed business mileage if they itemize and meet specific criteria. If your employer reimburses you at or below the IRS rate, the reimbursement is not taxable income.
The IRS requires contemporaneous records — meaning you must log miles at or near the time of each trip, not reconstruct them later. A valid mileage log should include:
Many people use mileage tracking apps that automatically record trips using GPS. These logs are accepted by the IRS as long as they contain all required information.
You have a choice between using the standard mileage rate or deducting actual vehicle expenses (fuel, insurance, repairs, depreciation). The standard rate is simpler and works well for most people. However, if you drive a large vehicle with high fuel costs, or if you have significant vehicle expenses, calculating actual costs might yield a larger deduction. You should calculate both methods in your first year to see which benefits you more.