IRS Standard Mileage Rate for 2025-2026: How Much You Can Deduct and When It Applies

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The IRS standard mileage rate sets how much you can deduct per mile driven for business, medical and charitable purposes during the 2025 and 2026 tax years. Instead of tracking every individual vehicle expense, eligible taxpayers can use this rate to simplify deductions for qualifying travel. The exact rate — and when it applies — depends on why you’re driving, so understanding the differences can help you claim the right deduction and avoid leaving money on the table.

What Is the IRS Standard Mileage Rate?

The IRS standard mileage rate lets eligible taxpayers deduct a set dollar amount per mile driven for business, medical and charitable purposes. It offers a simpler alternative to tracking individual vehicle expenses like gas, repairs and maintenance. Because each type of trip uses a different rate and set of rules, knowing which category your driving falls into is key to claiming the correct deduction and maximizing your tax savings.

The table below shows the IRS standard mileage rates for 2025 and 2026, broken out by the purpose of the trip. Each rate reflects how the IRS values a mile driven for different types of deductible travel.

The IRS reviews and updates these rates every year to reflect changes in variable costs such as fuel, maintenance and insurance. New mileage rates are typically announced in late December, though the exact timing can vary from year to year.

What Mileage Qualifies for a Tax Deduction?

Mileage is deductible only when the driving serves a specific, IRS-approved purpose. Understanding where the line is drawn can help you claim legitimate deductions — and avoid including miles the IRS won’t allow.

Mileage You Can Deduct

You may be able to deduct mileage driven for the following reasons:

• Business travel between job sites, client meetings or temporary work locations
• Self-employment and gig work, such as driving for Uber, DoorDash or Instacart
• Charitable driving for qualified organizations, including activities like delivering meals for Meals on Wheels or transporting rescued animals
• Medical travel, such as driving to doctor’s appointments, hospitals or pharmacies
• Military-ordered moves for active-duty service members

Mileage You Can’t Deduct

The IRS does not allow deductions for miles driven for personal reasons, including:

• Commuting to and from a regular workplace
• Personal errands or recreational travel

A Quick Note

If a single trip includes both deductible and personal driving — for example, attending a business conference and then sightseeing — only the qualifying portion of the miles can be deducted. Careful tracking and documentation are essential to exclude non-deductible mileage from your claim.

Who Qualifies for the Mileage Deduction?

Not everyone can claim the mileage deduction. It’s primarily available to people who use their vehicle for business, charitable or certain military-related purposes.

You may qualify if you are:

• Self-employed or a freelancer using your vehicle for business
• A small-business owner driving for work-related activities
• A volunteer for a qualified nonprofit organization
• Active-duty military claiming mileage related to a permanent change of station

Who Doesn’t Qualify?

Most W-2 employees cannot deduct unreimbursed mileage or other job-related vehicle expenses on their federal returns.

If you’re self-employed or driving for business purposes, the deduction likely applies. If you’re a traditional employee, it generally doesn’t.

What the Standard Mileage Rate Covers — and What It Doesn’t

The IRS standard mileage rate bundles many common vehicle costs into one simplified per-mile deduction. But not every expense is included — and some aren’t deductible at all.

Understanding the difference helps you avoid leaving money on the table.

Expenses Included in the Standard Mileage Rate

When you use the standard mileage method, these costs are already factored into the per-mile rate:

• Fuel
• Maintenance and repairs
• Tires
• Insurance
• Registration fees
• Depreciation

You cannot deduct these separately if you choose the standard mileage rate.

Expenses You Can Deduct Separately

Even if you use the standard mileage rate, you may still deduct:

• Parking fees related to business use
• Tolls for business trips

These are added on top of your mileage deduction.

Expenses That Aren’t Deductible

The following vehicle expenses generally cannot be deducted:

• Commuting miles between home and your regular workplace
• Personal use of the vehicle
• Car loan principal payments

Choosing Between the Standard Mileage and Actual Expense Methods

There are two ways to calculate your vehicle deduction. Each has advantages and trade-offs.

Standard Mileage Rate

Best for simplicity

• Easier tracking
• Less paperwork
• Straightforward calculations

However, it may result in a smaller deduction for expensive or high-maintenance vehicles.

Actual Expense Method

Best for higher-cost vehicles

• Deduct actual operating costs
• May produce a larger write-off

However, it requires detailed record-keeping and receipts.

Key Rule to Know Before You Decide

You can only use the standard mileage method if you choose it in the first year you use the vehicle for business.

After that first year, you can switch between methods in future years — but you can never use both methods for the same vehicle in the same tax year.

How to Calculate Your Mileage Deduction (With Simple Examples)

The way you calculate your deduction depends on which method you choose: the standard mileage rate or the actual expense method.

Here’s how each works in real life.

Example 1: Using the Standard Mileage Rate

A salesperson drives 1,000 business miles during the year and uses the 2026 standard mileage rate of 72.5 cents per mile.

To calculate the deduction:

1,000 miles ?– $0.725 = $725 deduction

That’s it. No tracking fuel, repairs or insurance — just miles driven for business.

Example 2: Using the Actual Expense Method

Now imagine a contractor who drives a heavy-duty pickup truck.

• Total miles driven: 1,200
• Business miles: 1,000
• Business-use percentage: 83.3%

During the year, the contractor incurs these deductible expenses:

• Fuel and oil: $800
• Insurance: $2,500
• Transmission repair: $3,500
• Depreciation: $10,000

Total vehicle expenses: $16,800

Because the truck was used for business 83.3% of the time, the contractor can deduct:

$16,800 ?– 83.3% = $13,994 deduction

How to Claim the Mileage Deduction on Your Tax Return

Claiming the mileage deduction starts with using the correct IRS form. The form you need depends on why you’re deducting mileage.

Here’s how it breaks down:

• Self-employed individuals and sole proprietors: Report business mileage on Schedule C (Form 1040).
• Farmers: Claim vehicle expenses on Schedule F (Form 1040).
• Qualified military members (moving expenses): Use Form 3903.
• Medical or charitable mileage: Claim these on Schedule A (Form 1040) if you itemize deductions.
• Certain employees with limited eligibility (such as qualified performing artists, reservists and some government workers): Use Form 2106, which flows to Schedule 1 (Form 1040).
• If using the actual expense method (including depreciation): You may also need Form 4562 to report depreciation and certain vehicle costs.

Keep in Mind

You must choose one deduction method per vehicle per year — either the standard mileage rate or the actual expense method. You cannot use both for the same vehicle in the same tax year.

How to Track Mileage and Document Business Use

Even though the standard mileage method is simpler than the actual expense method, you still need solid records to prove business use.

The IRS expects you to keep a detailed mileage log that includes:

• The date of each trip
• The business purpose of the trip
• The starting point and destination
• Beginning and ending odometer readings for each trip
• Your vehicle’s total odometer reading at the start and end of the year

You can track this information using:

• A spreadsheet
• A paper logbook
• A mileage-tracking app

Apps can make things easier, but any method works as long as your records are accurate and complete.

If the IRS ever questions your deduction, your documentation is what protects you. No records, no deduction.

When the Actual Expense Method Might Save You More

For many taxpayers, the standard mileage rate is the easiest and most practical choice. But in some situations, the actual expense method may result in a larger deduction.

You may want to consider it if you have:

• High fuel or repair costs
• An older vehicle with significant maintenance expenses
• A luxury or high-value vehicle with high depreciation
• Heavy business use (such as sales professionals or rideshare drivers)
• A leased vehicle with high monthly payments

If your vehicle costs are substantial, tracking actual expenses could lower your taxable income more than the flat mileage rate.

Which Mileage Deduction Method Makes the Most Sense?

For most taxpayers, the standard mileage rate is the simplest and most practical choice. It’s easy to calculate, requires less paperwork and works well for typical business use.

But if you drive a high-value vehicle, put heavy business miles on your car, or have unusually high operating costs, the actual expense method could deliver a larger deduction.

The smartest move? Keep detailed mileage records and run the numbers both ways — especially in your first eligible year. A quick comparison can help ensure you’re claiming the method that lowers your taxable income the most.

Accurate tracking today can mean meaningful tax savings later.

Data is accurate as of August 6, 2025, and is subject to change.

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