Mileage Deduction: IRS Standard Mileage Rates

Mileage Deduction: IRS Standard Mileage Rates for 2026

Large corporations often have the resources to hire full-time drivers to take care of their transportation needs. However, small business owners, particularly those who are just starting out, frequently rely on their own vehicles for business operations.

For many small business owners, owning a reliable vehicle is not just a convenience; it’s a necessity. The costs associated with vehicle ownership—such as fuel, tolls, repairs, insurance, and maintenance—can add up quickly.

Fortunately, the IRS standard mileage rates for 2026 can help self-employed professionals reduce their business-related transportation expenses.

Key Takeaways:

The IRS sets the mileage rates that can be deducted for business use of a vehicle.
The 2026 standard mileage rate for business use is $0.655 per mile.
There are two primary methods to calculate your mileage deductions: the standard mileage method and the actual expenses method.

Mileage Deduction: IRS Standard Mileage Rates

In This Article

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The IRS Standard Mileage Rates for 2026
How to Calculate Your 2026 Mileage Deductions
Final Thoughts
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The IRS Standard Mileage Rates for 2026

Each year, the IRS updates its standard mileage rates to reflect the costs associated with using a vehicle for business purposes. These rates determine how much individuals can deduct from their taxes for travel-related expenses.

Previously, employees could typically expect reimbursement for all business-related travel costs. For example, a professional in Kansas City sent to a conference in New York could usually anticipate that her employer would cover her expenses or that she could deduct them from her taxes. However, the Tax Cuts and Jobs Act of 2017 changed that landscape, ending itemized deductions for unreimbursed mileage expenses for most employees.

This year, self-employed individuals can claim a deduction rate of 65.5 cents per mile driven for business use. Here’s the breakdown from the IRS regarding the 2026 standard mileage rates:

“Beginning on January 1, 2026, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:

65.5 cents per mile driven for business use, an increase from the previous year,
22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, unchanged from 2025, and
14 cents per mile driven in service of charitable organizations; this rate is set by statute and remains unchanged from 2025.

How to Calculate Your 2026 Mileage Deductions

Calculating the deductible amount for business-related travel can be complex, especially for small business owners who must navigate numerous legal and financial responsibilities.

The good news is that there are two straightforward methods to calculate your mileage deductions at the end of the fiscal year: (1) the standard mileage method and (2) the actual expenses method.

The Standard Mileage Method. This method is generally regarded as simpler since it only requires tracking the miles driven for business purposes rather than all vehicle-related expenses. To use this method, take a photo of your vehicle’s odometer on January 1 to support your claims on tax forms.

Before filing, determine the percentage of those miles driven for business activities, including client visits or supply runs. Multiply your business mileage by the IRS mileage rate to calculate your deduction. For 2026, the rate is 65.5 cents per mile.

For example, if you drove a total of 15,000 miles in 2026, with 80% for business, that results in 12,000 deductible miles (15,000 x 0.80). Multiplying by the mileage rate ($0.655) gives a deduction of $7,860 for the tax year.
The Actual Expenses Method. While more complex, this method can yield significant savings if you’re diligent. You’ll need to track all vehicle-related expenses, including:
- Gas
- Auto insurance payments
- Maintenance (repairs, tires, etc.)
- Licensing and registration fees, which vary by state
- Lease payments
- Depreciation
For a comprehensive list of deductible vehicle-related expenses, click here.

Save all receipts for vehicle expenses throughout the year to substantiate your claims in case of an audit. After tallying your total vehicle expenses, multiply that number by the IRS’s standard mileage rate to arrive at your deductible amount.

Final Thoughts

Owning a vehicle can be a financial burden, but for small business owners or self-employed individuals in 2026, the advantages of vehicle ownership generally outweigh the downsides.

To maximize the benefits of owning a personal vehicle, it’s essential to stay updated on the IRS’s annual standard mileage rate and to understand your deduction options—the standard mileage method versus the actual expenses method. Being prepared come tax season will ensure you can file efficiently and secure maximum savings.

Additionally, maintaining meticulous records of all business-related travel expenses can simplify the deduction process. An organized filing system, both physical and digital, is invaluable for backing up your claims and ensuring compliance in case of an IRS audit.

In today’s economic environment, being strategic about your tax returns is crucial. Leveraging your business travel mileage deductions effectively can help you navigate financial challenges and optimize your tax position.

Never miss an opportunity that’s right for you.

Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.

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