The 2026 IRS mileage rate changed in July
For 2026, the IRS standard mileage rate for business driving is:
| Miles driven | Rate per mile |
|---|---|
| January 1 – June 30 | 72.5¢ |
| July 1 – December 31 | 76¢ |
The IRS set 72.5¢ for the year in December 2025, then raised it to 76¢ from July 1 because of higher fuel prices (Announcement 2026-11). So split your miles by date: the calculator applies the right rate to each half of the year.
What counts as business miles
- Driving between work sites, to clients, to suppliers, and to pick up materials
- Trips to the bank or post office for your business
- Driving from a home office to a client or job site, when your home is your main place of business
Commuting doesn't count. Driving from home to a regular workplace — an office or shop you rent — is personal, even if you take work calls on the way.
Parking and tolls are extra
The standard rate covers gas, insurance, repairs and depreciation. Business parking fees and tolls are deducted on top, so add them in the calculator.
Keep a mileage log
The IRS expects a record made at the time: the date, where you went, the business reason and the miles for each trip, plus your odometer reading at the start and end of the year. A notes app or a simple spreadsheet is fine.
Standard rate or actual costs?
Instead of the standard rate, you can deduct the business share of what you actually spent on the car — gas, insurance, repairs, registration and depreciation. That needs every receipt, and it can come out higher for an expensive vehicle you drive a lot for work. If you want to use the standard rate for a car you own, you have to choose it in the first year you use the car for business.
Frequently asked questions
How much tax does the mileage deduction save?
It lowers your profit, so you pay less self-employment tax (about 14.1% of the deduction) and less income tax (your bracket, often 10–22%). Together that's usually roughly a quarter to a third of the deduction.
Where do I claim it?
Self-employed people claim car expenses on Schedule C (line 9), with the vehicle details in Part IV. Our 1099 tax calculator includes it when you add it to your business expenses.
Can I bill my client for mileage too?
Yes, if your agreement allows it — add a mileage line to your invoice. Many freelancers charge the IRS rate. If the client pays you for the miles, that payment is income, and you still deduct the miles as an expense.
Does this work for a truck or van?
Yes, for cars, vans, pickups and panel trucks. Different rules apply if you use five or more vehicles at the same time.