What the 2026 mileage rate means in dollars
The IRS standard mileage rate for business use is 72.5 cents per mile in 2026. This rate covers the full cost of operating your vehicle for business — fuel, insurance, maintenance, and depreciation — in a single per-mile deduction.
For a freelancer who drives 10,000 business miles in 2026, the deduction is $7,250. For 20,000 miles, it is $14,500. The rate applies to cars, vans, pickups, and panel trucks, including electric and hybrid vehicles.
The medical and moving mileage rate for 2026 is 20.5 cents per mile. The charitable mileage rate remains at 14 cents per mile, set by statute and unchanged from 2025.
Standard mileage rate vs. actual expenses: which is better
You have two options for deducting vehicle costs: the standard mileage rate or actual expenses. Actual expenses include fuel, oil, repairs, tires, insurance, registration fees, and depreciation — tracked individually and multiplied by your business-use percentage.
The standard mileage rate is simpler and often produces a larger deduction for high-mileage drivers. Actual expenses can be better if you drive a newer, expensive vehicle or have high maintenance costs. You must choose one method in the first year you use the vehicle for business.
If you choose the standard mileage rate for a vehicle you own, you can switch to actual expenses in a later year. If you lease a vehicle and choose the standard mileage rate, you must use it for the entire lease period, including renewals.
What mileage records you need to keep
The IRS requires contemporaneous records — meaning you track mileage as you drive, not from memory at tax time. A mileage log should include the date, starting and ending odometer readings, destination, and business purpose for each trip.
Apps that automatically track GPS mileage are widely used and accepted. A spreadsheet or paper log also works. The key is that the record exists before you file, not after.
Personal commuting miles — from home to your regular place of business — are never deductible. Business miles include driving to client sites, job locations, supply stores, and other business destinations.
How RoboTax can help surface your vehicle deduction
Many self-employed workers undercount their business miles because they do not keep a consistent log. RoboTax connects to your accounts and can surface transactions related to vehicle use — fuel purchases, parking, tolls, and maintenance — so a tax professional has a clearer picture of your driving activity.
If you have not been tracking mileage consistently, a tax professional can help you reconstruct a reasonable estimate using calendar records, client invoices, and account statements. Starting a proper log now for the rest of 2026 protects your deduction going forward.
Frequently asked questions
What is the IRS mileage rate for 2026?
72.5 cents per mile for business use, 20.5 cents per mile for medical purposes, and 14 cents per mile for charitable driving.
Can I use the standard mileage rate if I drive an electric vehicle?
Yes. The standard mileage rate applies to electric and hybrid vehicles as well as gasoline and diesel vehicles.
Do I have to choose between the mileage rate and actual expenses every year?
For a vehicle you own, you must choose the standard mileage rate in the first year. After that you can switch to actual expenses. For a leased vehicle, you must stick with whichever method you chose for the entire lease period.
What records does the IRS require for a mileage deduction?
A contemporaneous mileage log showing the date, starting and ending odometer readings, destination, and business purpose for each trip. Apps, spreadsheets, or paper logs all work.
Sources and further reading
These resources are included for educational context. RoboTax is not tax, legal, or financial advice, and this content should be reviewed with a qualified tax professional before being used for filing decisions.