How the standard mileage rate works
Instead of tracking gas, repairs and insurance, you can deduct a set amount per business mile. For 2026 the rate is 72.5 cents for miles driven January 1 through June 30 and 76 cents for miles driven July 1 through December 31. Split your miles by date, since each period has its own rate.
- Commuting doesn't count. Business miles are trips between work locations, to clients, or for business errands, not the drive from home to your regular workplace.
- Keep a mileage log. Record the date, destination, purpose and miles for each trip, as it happens. A log is what the IRS asks for.
- Parking and tolls for business trips can be deducted in addition to the standard rate.
- Choosing the method. If you want to use the standard rate for a car you own, you generally have to use it in the first year the car is used for business. Ask us before you choose.
Mileage reduces the profit you pay tax on. See the effect in the 1099 tax calculator.
Parking, tolls, travel and meals have their own rules. Check other expenses →
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Sources
Facts checked against the sources above as of October 20, 2026. Educational information, not tax or legal advice. Results are estimates based on the information you enter; your situation may differ. Using this tool doesn't create a client relationship.