2026 IRS Standard Mileage Rates
The IRS has published Notice 2026-10, setting the standard mileage rates effective January 1, 2026. The business rate increased to 72.5 cents per mile, reflecting higher vehicle operating costs.
| Purpose | 2026 Rate | Change |
|---|---|---|
| Business | 72.5¢/mile | +2.5¢ |
| Medical / Moving (active-duty military only) | 20.5¢/mile | -0.5¢ |
| Charitable | 14¢/mile | No change |
The charitable mileage rate is set by statute (26 U.S.C. §170(i)) and is not adjusted for inflation. The business and medical rates are based on an annual study of fixed and variable costs of operating a vehicle.
2025 vs 2026 Rate Comparison
| Purpose | 2025 Rate | 2026 Rate | Change |
|---|---|---|---|
| Business | 70.0¢/mile | 72.5¢/mile | +2.5¢ |
| Medical / Moving | 21.0¢/mile | 20.5¢/mile | -0.5¢ |
| Charitable | 14.0¢/mile | 14.0¢/mile | — |
The 2.5 cent increase in the business rate means a freelancer driving 15,000 business miles in 2026 would deduct $375 more than they would have using the 2025 rate.
How to Calculate Your Mileage Deduction
Calculating your mileage deduction is straightforward: multiply the number of business miles you drove during the tax year by the standard mileage rate.
Formula:
Business Miles × $0.725 = Mileage Deduction
You report this deduction on:
- Schedule C (Line 9) if you're self-employed
- Form 2106 for employee business expenses (limited cases — most W-2 employees can no longer deduct unreimbursed expenses after TCJA)
Example Calculation
Sarah is a freelance graphic designer who drives to client meetings, the post office, and office supply stores. In 2026, she drove 12,000 business miles:
| Item | Amount |
|---|---|
| Business miles driven | 12,000 miles |
| × 2026 IRS rate | × $0.725 |
| Mileage deduction | $8,700 |
That $8,700 directly reduces Sarah's taxable income on Schedule C, Line 9.
Business vs Personal Mileage
The IRS is very specific about what qualifies as deductible business mileage. Your daily commute does not count — but most other business-related driving does.
What Counts as Business Mileage
- Driving from one work location to another
- Visiting clients or customers
- Going to business meetings
- Driving to the bank, post office, or office supply store for business purposes
- Driving to a temporary work location (less than 1 year)
- Driving from home to a temporary work location if you have a home office
- Real estate agents driving between showings
What Doesn't Count
- Commuting from home to your regular office
- Personal errands, even if done during the workday
- Driving to lunch (unless with a client for business purposes)
If you have a home office that qualifies as your principal place of business, then drives from home to client sites, temporary offices, or business errands all count as deductible business mileage — including the first and last drive of the day.
Track mileage automatically with Google Maps
ExpenseBot imports trips from Google Calendar and calculates deductions using the current IRS rate automatically.
Standard Mileage Rate vs Actual Expenses
The IRS gives you two methods to deduct vehicle expenses. You must choose one method per vehicle for the tax year:
| Feature | Standard Mileage Rate | Actual Expense Method |
|---|---|---|
| How it works | Multiply miles × rate (72.5¢) | Deduct actual costs proportionally |
| What's covered | Gas, insurance, repairs, depreciation — all-in-one | Each expense tracked individually |
| Record-keeping | Mileage log only | Mileage log + every receipt |
| Best for | Most people (simpler, often higher deduction for fuel-efficient cars) | Expensive vehicles with high operating costs |
| Restrictions | Must use in first year of vehicle use for business | Can switch to standard rate later (with depreciation limits) |
Most freelancers and small business owners benefit from the standard mileage rate because it's simpler and the 72.5 cent rate covers a wide range of vehicle costs. However, if you drive a vehicle with high maintenance costs, the actual expense method may yield a larger deduction.
How to Track Mileage for Tax Deductions
The key to maximizing your mileage deduction is consistent tracking. The IRS requires "contemporaneous" records — meaning you should log trips at or near the time they occur, not reconstruct them at year-end.
Here are your options, from least to most efficient:
- Paper logbook — Write down each trip's date, destination, purpose, and odometer readings. Simple but easy to forget.
- Spreadsheet — Use a Google Sheets template to log trips manually. Better organization but still manual.
- GPS tracking apps — Auto-record drives using your phone's GPS. Accurate but drains battery and tracks personal trips too.
- Google Maps + Calendar integration — The ExpenseBot mileage tracker imports appointments from Google Calendar, uses Google Maps to auto-calculate distances, applies the current IRS rate, and generates a tax-ready mileage log — all without background GPS tracking.
Your Google Calendar already contains your meetings, client visits, and appointments with addresses. ExpenseBot reads those entries, calculates the round-trip distance via Google Maps, and adds them to your mileage log with one click. No manual typing, no GPS battery drain.
IRS Mileage Log Requirements
If you're audited, the IRS will want to see a mileage log that includes these five elements for every business trip:
- Date of the trip
- Destination (where you drove)
- Business purpose (why the trip was necessary)
- Miles driven (odometer start/end or calculated distance)
- Total miles for the year (business + personal, to determine business-use percentage)
Mileage deductions are one of the most commonly audited items on Schedule C. Without a proper mileage log, the IRS can disallow your entire deduction — even if you actually drove those miles. Keep records throughout the year, not just at tax time.
Digital mileage logs (like those generated by ExpenseBot's mileage tracker) are accepted by the IRS and are actually preferable to handwritten logs because they include verifiable data (Google Maps distances, calendar event timestamps).