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Business miles driven
2026 IRS mileage rates
| Purpose | Jan 1 – Jun 30, 2026 | From Jul 1, 2026 |
|---|---|---|
| Business | 72.5¢ | 76¢ |
| Medical or moving (qualifying) | 20.5¢ | 23.5¢ |
| Charitable | 14¢ (set by law) | |
The revised rates apply to expenses paid or incurred on or after July 1, 2026. The IRS publishes current rates on its standard mileage rates page.
What counts as business miles
- Driving to meet clients, to a temporary work location, to buy supplies or to the bank or post office for the business.
- Commuting between home and a regular place of work generally does not count. If your home is your principal place of business, trips from home to client sites can qualify; see Publication 463.
- Parking and tolls for business trips can be deducted on top of the mileage rate.
Keep a log
The IRS expects a record for each trip: the date, miles, destination and business purpose, plus your odometer readings at the start and end of the year. A free spreadsheet or a phone app both work. Our expense tracker has a sheet for this.
Standard rate vs actual expenses
You can deduct either the standard mileage rate or your actual car costs (gas, insurance, repairs, depreciation). The choice has rules about which year you start and whether you can switch, so read Publication 463 or ask a tax professional before you pick. If you finance a vehicle, see getting a car loan as a freelancer.
FAQ
Why are there two rates for 2026?
The IRS set the business rate at 72.5 cents for January 1 through June 30, 2026, then raised it to 76 cents effective July 1, 2026. Miles driven in each period use that period's rate.
Can I deduct my commute?
Generally no. Commuting from home to a regular workplace is a personal expense. Special rules apply when your home is your principal place of business or you travel to a temporary location.
Where does the deduction go?
On Schedule C (Form 1040). Your tax software or a tax professional will place it.