How to Deduct Mileage on Taxes in 2026 (Step-by-Step Guide)

If you drive your personal vehicle for work — whether you are self-employed, a freelancer, an Uber driver, or a real estate agent — you are likely leaving thousands of dollars on the table every year by not deducting your mileage correctly. The IRS allows you to deduct 72.5 cents for every business mile driven in 2026, which means even a modest 10,000 business miles per year is worth $7,250 in deductions. This guide walks you through exactly how to claim it.

Who can deduct business mileage?

The mileage deduction is available to anyone who uses a personal vehicle for business purposes. This includes self-employed individuals filing Schedule C, gig economy drivers (Uber, Lyft, DoorDash, Instacart, Shipt, Amazon Flex), real estate agents, traveling salespeople, home health workers, contractors, and small business owners. As of the 2017 Tax Cuts and Jobs Act, W-2 employees can no longer deduct unreimbursed business mileage on their federal returns — but a few exceptions remain for armed forces reservists, qualifying performing artists, fee-basis state or local government officials, and some educator expenses.

The two methods: standard mileage vs. actual expenses

The IRS gives you two ways to calculate your vehicle deduction. The standard mileage rate method multiplies your business miles by the IRS rate (72.5 cents in 2026). The actual expenses method tracks every dollar you spend on the vehicle — gas, insurance, maintenance, depreciation, lease payments — and deducts the business-use percentage. For most people, the standard mileage rate is simpler and produces a similar or larger deduction. But if you drive an expensive vehicle with high actual costs, the actual expenses method may save more. You must choose the standard mileage rate in the first year you use the vehicle for business; otherwise you are locked into actual expenses for the life of that vehicle.

What counts as a deductible business mile?

A business mile is any mile driven with a clear business purpose. This includes driving to client meetings, between job sites, to pick up supplies, to the post office for shipping, to networking events, and to the bank for business deposits. For rideshare and delivery drivers, every mile from the moment you go online (including driving to a high-demand area) until you go offline counts. What does NOT count: your regular commute from home to a fixed office. The first and last miles of your day to and from a regular workplace are personal commute miles, not business miles. However, if you have a qualifying home office, your home becomes your principal place of business, and trips from there to client locations are deductible.

What records does the IRS require?

IRS Publication 463 requires four pieces of information for every business trip: the date, the destination, the business purpose, and the miles driven. You must also record your odometer reading at the start of the year and at the end of the year. Records must be "contemporaneous" — meaning you log them at or near the time of the trip, not reconstructed at year-end. A weekly log is considered timely. The records can be kept on paper, in a spreadsheet, in an app, or as a PDF — the IRS does not require any specific format, only that all required information is present.

How to file the deduction (Schedule C, line 9)

If you are self-employed, you report your mileage deduction on Schedule C, line 9 ("Car and truck expenses"). Multiply your business miles by the 2026 IRS rate of 72.5 cents. For example, 12,500 business miles × $0.725 = $9,062.50. Add any parking fees and tolls (these are deductible separately on top of the mileage rate). You will also need to fill out Part IV of Schedule C, which asks for the total miles driven during the year, business miles, and personal miles. If you used more than one vehicle, attach a statement with the same information for each.

Common mistakes that trigger audits

The IRS scrutinizes vehicle deductions closely because they are commonly inflated. Round numbers (exactly 10,000 miles, exactly 12,000 miles) are a red flag. Claiming 100% business use of a personal vehicle is rarely credible — most people have at least some personal use. Claiming more business miles than the vehicle was actually driven (based on odometer readings) is an immediate disqualifier. Reconstructing a log at tax time without supporting evidence (calendar entries, client invoices, GPS data) often gets disallowed. The safest approach is to track contemporaneously, log specific destinations and purposes, and keep your odometer readings.

Generate your IRS-ready log in 3 minutes

Use the free generator on this site to enter your trips and download an IRS-compliant PDF. It includes every field the IRS requires, calculates your deduction at the 2026 rate automatically, and saves to your browser so you can come back and add trips throughout the year. No signup, no credit card, no app to install.