Mileage Tax Deduction: How To Deduct Gas and Vehicle Expenses in 2026
Written by
Paige Cerulli
Edited by
Melanie Grafil, M.A., CHFC™
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You may be able to claim a mileage tax deduction for gas and other vehicle costs if you use your car for qualifying business, medical or charitable purposes. If you qualify for a mileage deduction, you can choose to use the IRS standard mileage rate or to deduct the actual expenses you paid for fuel, oil, repairs and maintenance.
This guide explains who qualifies, which deduction payment may save you more and how to claim the deduction correctly in 2026, especially amid high gas prices.
Who Qualifies for the Mileage Tax Deduction — and Who Doesn’t?
Whether you can claim a mileage or vehicle expense deduction depends on the type of work you do.
Who Can Claim a Mileage or Vehicle Expense Deduction
You may be able to claim a mileage or vehicle expense deduction if you’re a:
- Self-employed individual, freelancer or independent contractor
- Gig-economy worker, including if you do rideshare, delivery or have a side hustle
- Small business owner using your personal vehicle for work
If you do charitable or volunteer work, you may be able to claim a mileage deduction for your travel related to that work. You can also deduct transportation required for medical care.
What Doesn’t Qualify as Deductible Mileage
While mileage is deductible in many situations, you won’t qualify to deduct mortgage if you are:
- Commuting from home to a regular workplace
- Doing personal errands or driving for non-business purposes
- Claiming miles already reimbursed by your employer
- Driving for mixed-use purposes without proper records
Standard Mileage Rate vs. Actual Expenses: Which Method Saves You More?
You have the option to claim the IRS standard mileage rate or your actual driving expenses. Depending on your situation, one option could save you more money than the other.
How the Standard Mileage Rate Works
The IRS standard mileage rate is a flat, predetermined rate that simplifies the process of deducting mileage. The IRS updates this rate annually, and the 2025 standard mileage rate is $0.70 per mile. Expenses like fuel, maintenance, vehicle depreciation and insurance are all bundled into the flat rate, so you don’t have to track those expenses separately. Instead, you can just track your mileage and apply the standard mileage rate to calculate your deduction.
What Counts Under the Actual Expense Method
If you use the actual expense deduction method, you can deduct the actual expenses you paid for fuel, oil, vehicle repairs and maintenance during the year. You can also deduct your insurance, registration, lease payments and vehicle depreciation costs. Tolls and parking costs for business use are also deductible.
To use the actual expense method, you’ll need to maintain detailed records of each expense, including all of your receipts. If you use your vehicle for business and personal use, you can only deduct the expenses related to business use. For example, if you use your vehicle for 60% business and 40% personal use, then you can only deduct 60% of your expenses.
IRS Rules That Limit Which Method You Can Use
Several IRS rules limit which method you can use. If you own your vehicle, you must choose the standard mileage rate in the first year that you use the car for your business, but you can then choose the actual expense deduction in following years.
The IRS limits how much depreciation you can deduct. If you claim a Section 179 deduction on your car, which allows you to deduct the vehicle’s full purchase price, you cannot use the standard mileage rate on the car.
Standard Mileage vs. Actual Expenses Comparison
| Standard Mileage Rate | Actual Expense | |
|---|---|---|
| What’s included | Expenses like: – Gas – Oil – Routine maintenance – Depreciation – Insurance and registration fees are built in |
– Gas – Oil – Repairs – Maintenance – Tires – Insurance premiums – Registration and license fees – Depreciation or lease payments |
| What you must track | Mileage | Records and receipts of all included expenses |
| Pros | Simple and straightforward method, requires only keeping a mileage log | Accurately reflects your actual costs |
| Cons | May not reflect your actual costs, like a large repair bill | Tracking expenses can be time-consuming |
| Best fit by driver type | Drivers who have lots of mileage | – Lower mileage drivers – Drivers who have a more expensive vehicle that is depreciating – Drivers who had a large expense, like a big vehicle repair |
| Calculation to compare | 10,000 miles x $0.70 = $7,000 | Percentage of business use x all of your expenses = Deduction |
How To Claim the Mileage Tax Deduction and Track Expenses Correctly
To claim the mileage tax deduction, it’s important to correctly and accurately track your expenses.
Step-by-Step: How To Claim the Deduction
1. Keep Track of Your Mileage
Track your mileage or your mileage and business-related vehicle expenses throughout the year. Keep receipts of all of your expenses. If you’re tracking actual expenses, then record your odometer reading at the beginning and the ending of the year. You’ll compare your tracked business miles to your odometer reading to calculate which percentage of your total expenses you can deduct for business use.
2. Choose the Mileage Deduction Method That Saves You the Most
Choose the deduction method that results in the larger write-off. The first year you deduct your mileage, it may be helpful to track both your mileage and all of your vehicle expenses, so you can calculate each write-off option to determine which saves you more on your taxes.
3. Report the Deduction
You will use IRS Form Schedule C to report your mileage deduction.
What Records the IRS Requires You To Keep
Keep track of your records, as the IRS requires you to maintain those. If you’re tracking your mileage, your mileage log needs to include details like the date of the trip, your starting point, your destination, your total miles driven and the purpose of the trip.
If you’re tracking actual expenses, do the following:
- Maintain receipts for fuel and other vehicle-related expenses.
- Make sure that all of your receipts include the date and clearly state the item or service purchased.
- If you receive a handwritten receipt from a mechanic for work done on your vehicle, double-check it to make sure it will meet IRS requirements before you leave.
- Make sure your records prove how you’re using the vehicle for business.
- Your mileage log should show the dates and how you used the vehicle for business. This is so you can justify the percentage of the actual expenses you deduct.
Digital Tools and Mileage Tracking Apps
Apps and digital logs are acceptable as long as they’re accurate. Focus on consistently tracking your business mileage, and make sure that every entry includes appropriate detail.
Common Mileage Deduction Mistakes and Smart Tips
Deducting mileage can be a bit tricky, especially if you haven’t done it before. It’s best to avoid these common mistakes, as it can make filing your taxes more difficult:
- Claiming commuting miles: Your mileage isn’t tax-deductible if you’re commuting from home to a regular workplace. Don’t include these miles in your deduction.
- Estimating mileage after the fact: Your mileage deduction needs to be carefully tracked and accurately reported. Be sure to track your mileage every day, and don’t estimate your mileage.
- Forgetting to separate personal and business use: If you use your vehicle for business and personal purposes, you need to track those different uses. You can only deduct mileage for the percentage of the use that is for business purposes.
- Assuming gas alone is deductible: Gas alone can’t be deducted because you could use the gas for both personal and business use. Instead, you can use the standard mileage rate, which has your gas expenses built-in, or you can deduct the percentage of your total gas costs that went to business use.
Tips To Maximize Your Vehicle Deduction in High Gas-Price Years
During years when gas prices are high, you can maximize your vehicle deduction in several ways:
- Compare both methods annually: If you’re paying a lot for gas, the actual expense method might help you deduct more from your taxes than the standard mileage rate will. Try calculating out both deduction methods to see which saves you more.
- Track mileage consistently: Carefully and accurately track all of your business mileage to maximize your deduction.
- Reassess deductions if driving patterns change: If you have a year when you drive much more or much less, buy a new vehicle or have to pay for major vehicle repairs, reassess your deduction method to be sure you’re still choosing the method that saves you the most.
FAQs About the Standard Mileage Rate
Here are the answers to some of the most frequently asked questions about the standard mileage rate and how it works:- Can I deduct commuting miles?
- You usually can't deduct mileage for your commute from your home to your regular workplace. If you're traveling to a temporary work site or to a client, you may be able to deduct that mileage.
- What if I use my car for both personal and business?
- If you use your car for both personal and business, you'll need to track the mileage that's specifically for business use. By recording your vehicle's odometer reading at the beginning and end of the year, you can compare that business mileage to your total mileage to calculate what percentage of your driving was for business use, and is tax-deductible.
- What if my employer reimburses me?
- If your employer reimburses you for mileage, you cannot deduct that mileage from your taxes.
- Is gas deductible by itself?
- Gas can't be deducted by itself. It's either written into the standard mileage rate or you can deduct the percentage of the gas used for business purposes when deducting exact expenses.
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