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Tax Year 2026

Mileage and Taxes

A practical, plain-English guide to deducting vehicle mileage. The IRS rate, who can deduct what, what the IRS expects you to track, and the standard-rate-vs-actual-expenses decision — all without the legalese.

The 5-minute overview

There are two methods.

You can deduct vehicle expenses two ways: the standard mileage rate (currently 73¢ per business mile) or actual expenses (gas, insurance, depreciation, repairs, lease payments). Most filers use the standard rate because it's simpler and a calculator's worth of math; actual expenses can win for expensive vehicles, low business-use percentages, or EVs with significant depreciation. Full breakdown →

Eligibility depends on who you are.

Self-employed people, sole proprietors, single-member LLCs, partners, and contractors deduct on Schedule C or E. After the 2017 Tax Cuts and Jobs Act, most W-2 employees lost the ability to deduct unreimbursed business mileage on the federal return through 2025 (Armed Forces reservists, performing artists, and fee-basis officials are documented exceptions). Medical mileage is on Schedule A and only matters above 7.5% of AGI. Charitable mileage is also on Schedule A at the statutory 14¢. Eligibility chart →

Commuting doesn't count.

The single most common mistake first-time filers make: counting the trip from home to a regular place of work. The IRS treats that as personal commuting, not business mileage. Travel between two work locations during the day, to a temporary work site, or to a client during work hours does count. When does each apply? →

Records are the real test.

For each business trip the IRS expects four data points: date, destination, business purpose, and miles driven. Recorded contemporaneously — at the time of the trip, not reconstructed at year-end. A reconstructed log is weak evidence; a contemporaneous one is what actually survives an audit. What survives an audit →

Track miles AND fuel — keep your options open.

If you track miles only, you can use the standard rate. If you track miles plus every fuel receipt, you can choose either method at tax time. AutoDrive captures both automatically — every trip's miles and every fuel or EV charging session — so the standard-vs-actual decision becomes a switch, not a re-key. It also captures the tolls and parking you pay on a business trip — automatically, when your route crosses a toll plaza — which are deductible on top of the standard mileage rate.

Track every mile automatically

AutoDrive logs the date, route, and miles for every drive in the background. One tap to tag the purpose; your 2026 mileage report is ready when April is.

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