If you drive for your business, mileage is often the biggest deduction you have. For 2026 the IRS set two business rates because it raised the rate mid-year when fuel prices climbed.
2026 standard mileage rates
| Use | Jan 1 – Jun 30, 2026 | From Jul 1, 2026 |
|---|---|---|
| Business | 72.5¢ per mile | 76¢ per mile |
| Medical and moving (qualifying) | 20.5¢ | 23.5¢ |
| Charity | 14¢ | 14¢ |
Use the rate in effect on the day you drove. That means your mileage log needs dates.
3,000 × $0.725 = $2,175
3,000 × $0.76 = $2,280
Total deduction: $4,455, plus business parking and tolls.
What counts as business miles
- Driving to meet clients or customers
- Trips to pick up supplies or equipment
- Travel between two work locations
- Driving from a qualifying home office to a client
Commuting doesn’t count. Driving from home to a regular place of work — an office or a coworking space you use every day — is a personal commute.
Standard rate or actual expenses?
You can deduct either the standard rate or the business share of your actual costs: gas, insurance, repairs, registration, and depreciation or lease payments. The standard rate needs far fewer records and is usually close for an efficient car. Actual expenses can come out ahead for an expensive vehicle with high business use.
If you want to use the standard rate for a car you own, choose it in the first year you use the car for business. After that you can generally switch between methods, with some limits.
Keep a log
For each business trip, record the date, the miles, where you went and the business purpose. A phone app that tracks drives automatically makes this painless. Without a log, the deduction is hard to defend.
What the deduction is worth
Mileage is a Schedule C expense, so it lowers both income tax and self-employment tax. In the 12% bracket, the $4,455 deduction above saves roughly $1,000 of federal tax. See how deductions change your bill with the set-aside calculator, and find more in deductions freelancers often miss.