License to Deduct
If you drive for work and file a Schedule C, the IRS standard mileage rate is one of the most powerful deductions available to you. For 2026, the IRS set the standard mileage rate at 70 cents per mile for business use of your personal vehicle — a number that can add up to thousands of dollars in tax savings for active gig workers.
This guide breaks down everything you need to know: how the rate is determined, who qualifies, what counts as a deductible mile, and how to make sure you capture every one.
What Is the IRS Standard Mileage Rate?
The IRS standard mileage rate is a fixed cents-per-mile amount that self-employed individuals and small business owners can use to calculate the business use deduction for a personal vehicle. Instead of tracking actual costs (gas, oil, tires, insurance, depreciation), you simply multiply your total business miles by the current rate.
For 2026:
| Purpose | Rate Per Mile |
|---|---|
| Business (self-employed) | 70.0 cents |
| Medical or moving (military) | 21 cents |
| Charitable purposes | 14 cents |
The business rate is the one that matters for gig workers and freelancers.
How the IRS Sets the Rate
The IRS recalculates the standard mileage rate annually (and sometimes mid-year for extraordinary circumstances) based on a study of fixed and variable vehicle costs. Key inputs include:
- Fuel prices — The largest variable. When gas prices rise sharply, the rate tends to follow.
- Vehicle depreciation — The cost of wear on your car is baked into the per-mile figure.
- Insurance, maintenance, tires — Average costs across vehicle types are included.
Because the rate already accounts for all of these costs, you cannot also deduct gas receipts or oil changes separately when using the standard mileage method. You take the rate instead of actual expenses, not in addition to them.
Who Qualifies for the Business Mileage Deduction?
You can claim the standard mileage deduction if you are:
- Self-employed and filing Schedule C — This is the primary use case. Uber and Lyft drivers, DoorDash couriers, freelance photographers, real estate agents, consultants, and any independent contractor with business driving qualifies.
- A statutory employee — A specific tax category for certain commission-based workers.
- An Armed Forces member — For qualifying moves.
Who does not qualify: Regular W-2 employees can no longer deduct business mileage on their personal taxes following the 2017 Tax Cuts and Jobs Act. If you receive a W-2, you need to work through your employer's reimbursement program instead.
What Miles Count as Business Miles?
Not every mile you drive is deductible. The IRS distinguishes between business driving and commuting, and the line matters.
Deductible miles include:
- Driving from your home office to a client site
- Driving between client sites or job sites during the work day
- Running business errands (to a supply store, to a post office to ship client packages)
- Driving to meet a client or prospect
- Rideshare and delivery miles while the app is active
- Real estate agent drives to show properties or visit listings
Non-deductible miles:
- Commuting from home to a regular workplace is not deductible — for most people
- Personal errands mixed into a work trip (the personal portion)
- Driving to pick up personal groceries or run household errands
The home office exception: If your home qualifies as your principal place of business (common for freelancers and remote contractors), then trips from your home to client locations can be deductible. The IRS requires your home office to be used regularly and exclusively for business.
The Standard Mileage Method vs. Actual Expenses
When claiming a vehicle deduction, you generally have two options:
Option 1: Standard Mileage Rate
Multiply total business miles by $0.70. Done. Clean, simple, no receipts to keep beyond your mileage log.
Example: A real estate agent drives 12,000 business miles in 2026.
- Deduction: 12,000 × $0.70 = $8,400
Option 2: Actual Expense Method
Track every vehicle cost for the year — gas, insurance, registration, oil changes, tires, depreciation — and apply the business-use percentage to the total.
Example: Total vehicle costs = $14,000/year. Business use = 60%.
- Deduction: $14,000 × 0.60 = $8,400
Both methods can produce the same result, but they have different requirements:
| Factor | Standard Mileage | Actual Expenses |
|---|---|---|
| Record keeping | Mileage log only | All receipts + mileage |
| Simplicity | High | Low |
| Flexibility | Lower (can't switch easily) | Higher |
| Best for | Most gig workers | High-depreciation or leased vehicles |
Important rule: If you want to use the standard mileage rate, you must choose it in the first year you use the vehicle for business. Once you use actual expenses for a year, you generally cannot switch to standard mileage for that vehicle later.
IRS Mileage Rate History (2020–2026)
Understanding the trend helps put 2026's rate in context:
| Year | Rate (Cents/Mile) | Change |
|---|---|---|
| 2020 | 57.5 | — |
| 2021 | 56.0 | -1.5 |
| 2022 (Jan–Jun) | 58.5 | +2.5 |
| 2022 (Jul–Dec) | 62.5 | +4.0 (mid-year adj.) |
| 2023 | 65.5 | +3.0 |
| 2024 | 67.0 | +1.5 |
| 2025 | 70.0 | +3.0 |
| 2026 | 70.0 | 0.0 |
The mid-year 2022 adjustment was unusual — the IRS made it in response to the spike in fuel prices that year. The 2026 rate holding steady at 70 cents per mile reflects relatively stable vehicle operating costs.
What Records Does the IRS Require?
The IRS requires a contemporaneous mileage log — meaning you record trips close to the time they occur, not from memory at year-end. Your log must show, for each business trip:
- Date of the trip
- Destination (city and name, or business address)
- Business purpose of the trip
- Miles driven (odometer start and end, or total miles)
You must also document your vehicle's total miles for the year (via odometer readings at January 1 and December 31) and your personal miles, so the IRS can verify your business-use percentage.
IRS Tip: Handwritten logs, spreadsheets, and GPS-based app logs all qualify. The key is that records exist and were created at or near the time of each trip. Year-end reconstructions from memory do not hold up to audits.
How Mileage Tracking Apps Help
Maintaining a manual log for every trip is tedious, and many gig workers simply forget. Mileage tracking apps solve this by automatically recording trips in the background.
Look for an app that:
- Logs trips automatically using GPS (without requiring you to start and stop it manually)
- Lets you classify trips as business or personal with a single tap
- Exports IRS-compliant reports in PDF or CSV format
- Protects your privacy — your GPS route data should stay on your device, not sold to third parties
License to Deduct was built specifically for this use case. It tracks every trip automatically, keeps your location data private (you choose how much syncs to the cloud), and exports a compliant mileage log with all the fields the IRS requires.
Maximizing Your Deduction: Tips for Gig Workers
Track every mile, not just the obvious ones
Many gig workers track rides or deliveries but forget about:
- The drive to pick up supplies before a shift
- Post-shift mileage driving home after the last drop-off (if your last stop is a client location, not a regular workplace)
- Drives to meet an accountant, attorney, or other business professional about your business
Keep odometer records at year boundaries
Photograph your odometer on January 1 and December 31. This creates contemporaneous evidence of your total annual mileage that backs up your business-use percentage calculation.
Separate personal and business vehicles on your log
If you use one car for both personal and business driving (common for gig workers), your log must distinguish every trip. Apps make this automatic; manual logs require discipline.
Don't ignore the home-to-airport run
If you travel for business, the drive to the airport from your home office qualifies as a business mile. Same with parking fees. Keep receipts.
File on time and keep records for three years minimum
The IRS can audit returns up to three years after filing. For fraud cases, there is no limit. Keep your mileage logs and supporting records for at least three years after the due date of the return on which you claimed the deduction. Many tax professionals recommend keeping them for six years to be safe.
The Bottom Line
At 70 cents per mile in 2026, the standard mileage deduction is a meaningful write-off. A delivery driver doing 20,000 business miles a year deducts $14,000 from their taxable income. At a 22% marginal rate, that is over $3,000 in actual tax savings.
The catch is that you need the records to prove it. An app that tracks miles automatically, lets you classify trips, and exports a clean log at tax time pays for itself many times over in documentation peace of mind.
Ready to track every mile? Download License to Deduct — it's free, privacy-first, and exports the exact report format the IRS expects.
Tax laws change. This article reflects rates and rules as of early 2026. Always verify with the IRS website or a qualified tax professional for your specific situation.