The 2026 IRS Standard Mileage Rate
The IRS sets the standard mileage rate annually based on a study of fixed and variable vehicle costs. For 2026, the business mileage rate is 72.5 cents per mile, up from 70 cents in 2025. At this rate, every 1,000 business miles you drive is worth a $725 deduction — before any state-level benefit.
| Year | Business Rate | Medical/Moving | Charity |
|---|---|---|---|
| 2026 | 72.5¢/mile | 21¢/mile | 14¢/mile |
| 2025 | 70¢/mile | 21¢/mile | 14¢/mile |
| 2024 | 67¢/mile | 21¢/mile | 14¢/mile |
| 2023 | 65.5¢/mile | 22¢/mile | 14¢/mile |
The business rate is the only one relevant for freelancers claiming a Schedule C vehicle deduction. The medical and charity rates apply to very different situations and are far less commonly used.
Which Trips Qualify as Business Miles
Business mileage is travel between one business location and another for a legitimate business purpose. Examples that qualify:
- Driving to a client's office for a meeting
- Traveling to a job site to perform work (photographers, contractors, consultants)
- Driving to a co-working space or temporary work location
- Going to a bank, post office, or supply store for business purposes
- Attending a professional conference, trade show, or networking event
- Driving between two different client locations in the same day
The Commuting Rule — and the Home Office Exception
Commuting miles — driving from your home to a regular place of business — are never deductible, even for self-employed workers. This is a firm IRS rule. However, there is one critical exception that many freelancers miss.
The home office exception
If your home qualifies as your principal place of business — meaning you have a dedicated home office you use regularly and exclusively for work — then your home is considered a business location. In that case, any drive from your home to a client site, temporary work location, or any other business destination counts as business mileage, not commuting.
This is a significant benefit. A freelancer who works from a qualified home office and drives to three client meetings per week could deduct thousands of miles annually that would be non-deductible commuting for an employee.
Temporary work locations
Even without a home office, travel to a temporary work location away from your regular place of business can be deductible. The IRS defines "temporary" as a location where you expect to work for one year or less.
Standard Rate vs Actual Expense Method
You have two choices for calculating your vehicle deduction. You must choose a method when you first place a vehicle in service for business use, and some restrictions apply when switching.
| Method | How It Works | Best For | Record-Keeping |
|---|---|---|---|
| Standard Mileage Rate | Total business miles × 72.5¢ | High-mileage drivers, older vehicles, simplicity | Just log miles |
| Actual Expense Method | Business % of all vehicle costs (gas, insurance, repairs, depreciation) | New/expensive vehicles, low mileage with high fixed costs | All receipts + mileage log for business % |
Which method wins?
For most freelancers who drive a reasonably fuel-efficient vehicle and put in 10,000–20,000 business miles per year, the standard rate is simpler and often delivers a higher or comparable deduction. The actual expense method can win if you're driving a high-cost vehicle (luxury car, large truck) with significant depreciation and insurance costs, and your business use percentage is high.
One restriction: if you use the actual expense method in year one for a vehicle, you cannot switch to the standard mileage rate in future years for that same vehicle. The reverse is possible — you can switch from standard to actual later — with some limitations.
How to Track Mileage (IRS-Compliant)
The IRS requires contemporaneous records — meaning you document trips at or near the time of travel, not reconstructed from memory months later. Each log entry must include:
- Date of the trip
- Destination (city and business name)
- Business purpose (e.g., "client meeting with Acme Corp," "supply run for project materials")
- Miles driven (odometer start and end, or GPS-based distance)
Mileage tracking apps
Manual logs work but apps make compliance effortless. Popular options for 2026:
| App | Auto-Detection | Cost | IRS-Ready Reports |
|---|---|---|---|
| MileIQ | Yes (GPS) | ~$5.99/month | Yes |
| Everlance | Yes (GPS) | Free / $10/month premium | Yes |
| TripLog | Yes (GPS) | Free / $4.99/month | Yes |
| Hurdlr | Yes | $8.34/month (annual) | Yes |
| Spreadsheet | No | Free | Manual |
Deduction Examples by Annual Miles
Here's what the standard mileage deduction looks like at different driving volumes, and the resulting tax savings at common bracket rates:
| Annual Business Miles | Deduction (72.5¢) | Tax Saved (22%) | Tax Saved (24%) |
|---|---|---|---|
| 3,000 miles | $2,175 | $479 | $522 |
| 5,000 miles | $3,625 | $798 | $870 |
| 10,000 miles | $7,250 | $1,595 | $1,740 |
| 15,000 miles | $10,875 | $2,393 | $2,610 |
| 20,000 miles | $14,500 | $3,190 | $3,480 |
Since mileage is claimed on Schedule C, it also reduces net SE income — which means it saves self-employment tax (15.3% on 92.35% of net profit) in addition to income tax. Add roughly 14% more savings on top of the income tax savings above.
Where to Claim It on Your Tax Return
Vehicle expenses for freelancers are reported on Schedule C (Form 1040):
- Line 9 — Car and truck expenses (the total deduction amount)
- Part IV — Information on your vehicle (odometer readings, total miles, business miles, personal miles, dates)
If you use the standard mileage rate, you simply enter total business miles in Part IV, and the deduction flows to Line 9. If you use the actual expense method, you calculate the business-use percentage and apply it to all vehicle costs, then enter the total on Line 9.
For most solo freelancers using one vehicle partially for business, the standard rate method keeps the Schedule C remarkably clean. See our complete Schedule C guide for how all the pieces fit together.
3 Mistakes That Get Mileage Deductions Disallowed
1. Estimating mileage without records
The IRS regularly disallows vehicle deductions in audits when taxpayers can't produce contemporaneous records. "I drove about 12,000 miles for work" without a log is not sufficient. Keep digital or written records throughout the year.
2. Deducting commuting miles
A common audit trigger: claiming trips from home to a regular client as business miles when no home office exists. If you have a primary workspace that isn't your home, driving there is always commuting regardless of what you call it.
3. Using standard mileage on a vehicle with prior Section 179 deduction
If you took a Section 179 deduction or bonus depreciation on a vehicle in a prior year, you cannot switch to the standard mileage rate for that vehicle. You're locked into actual expenses once accelerated depreciation has been claimed.
To see how the mileage deduction reduces your quarterly estimated taxes, try our Quarterly Tax Estimator and enter your expected annual business miles as a deduction. Our SE Tax Calculator shows the full SE tax picture once your Schedule C expenses are accounted for.
For more deductions, read our Best Tax Tips for Self-Employed Freelancers and Home Office Deduction guide — the home office and mileage deductions frequently work together.
Frequently Asked Questions
What is the IRS mileage rate for 2026?
The IRS standard mileage rate for business driving is 72.5 cents per mile in 2026. This rate is designed to cover the average cost of gas, oil, maintenance, tires, insurance, registration, and depreciation across all types of vehicles. You multiply your total qualifying business miles by this rate to get your deduction.
Can freelancers deduct commuting miles?
No — commuting from home to a regular workplace is never deductible. However, if you have a qualified home office as your principal place of business, then driving from home to client sites is business travel, not commuting. The home office exception turns what would be non-deductible commuting into deductible business miles.
Do I need to keep a mileage log for tax purposes?
Yes. The IRS requires contemporaneous records — written or digital entries made at or near the time of travel. Each entry needs the date, destination, business purpose, and miles driven. Tracking apps like MileIQ or Everlance handle this automatically using GPS. Without a log, the IRS can fully disallow your vehicle deduction in an audit.
Standard mileage vs actual expenses — which is better?
Standard mileage (72.5¢/mile) wins for most freelancers — it's simpler and often delivers equal or better deductions, especially for older vehicles or moderate-to-high mileage. Actual expenses (gas, insurance, depreciation, maintenance) can win for new expensive vehicles with high fixed costs and high business-use percentage. You must pick standard mileage from the start to keep the option open in future years.
Where do I claim the mileage deduction on my tax return?
Freelancers claim vehicle expenses on Schedule C, Line 9 (Car and truck expenses). You complete Part IV of Schedule C with your vehicle details, odometer readings, total miles, and business miles. Using the standard rate, the deduction = total business miles × 72.5¢. This deduction reduces your Schedule C net profit, lowering both income tax and self-employment tax.