Mileage Deduction Rate 2026: What 70 Cents Per Mile Covers
One number decides a large share of every gig worker's tax bill: the business mileage deduction rate. For 2026 it is 70 cents per mile. Understanding what that rate already pays for — and what it does not — is the difference between a clean deduction and a double-counted one.
What the rate is designed to replace
The IRS builds the business rate from studies of average vehicle operating cost. Baked into the 70 cents are fuel, oil, maintenance and repairs, tires, insurance, registration and depreciation. Take the standard rate and you have already claimed all of those; deducting them separately is the single most common rideshare and delivery filing error.
What still sits outside the rate
Parking and tolls incurred while working, the business share of vehicle loan interest, and personal property tax on the vehicle are all deductible on top of standard mileage. Everything else about running the car is inside it.
Business rate versus the other IRS rates
The medical and moving rate and the charitable rate are much lower and are claimed elsewhere on the return. For Schedule C driving — gig platforms, freelance client visits, contractor jobs — only the business rate applies. Do not blend them.
Mid-year rate changes
Most years carry a single rate. When fuel prices spike the IRS has occasionally issued a mid-year revision, in which case you split your log at the effective date, apply each rate to its own period, and add the results. Keep a log detailed enough by date that this split is possible.
When actual expenses beat the standard rate
Run the comparison if you drive an expensive or leased vehicle, carry a large insurance premium, or drive modest annual miles with heavy repair costs. Actual expenses require every receipt plus a business-use percentage, so the extra deduction has to be worth the recordkeeping. High-mileage drivers in cheap, efficient cars almost always do better on the standard rate.
The method lock-in rule
Use standard mileage in the first year a vehicle is placed in service and you may switch methods in later years. Start with actual expenses and accelerated depreciation and that vehicle can never use the standard rate. Choose the first year deliberately, because it constrains every year after it.
What a mile is really worth
The deduction reduces profit, so it cuts income tax and the 15.3% self-employment tax together. In the 12% bracket that is roughly 17 to 19 cents of tax per mile; in the 22% bracket closer to 27 to 30 cents. Twenty thousand miles is a $14,000 deduction and commonly $3,400 to $5,600 of tax.
Apply the rate to your own miles
Use the mileage deduction rate calculator to apply the 2026 rate to your driving and see the deduction and estimated tax saved.
Frequently asked questions
+What is the business mileage deduction rate for 2026?
$0.70 per business mile, covering fuel, maintenance, insurance, tires and depreciation.
+Can I add gas on top of the standard rate?
No. Gas is already included. Adding it is double-counting and a common audit adjustment.
+Are tolls and parking included in the rate?
No, they are deductible separately when incurred for business driving.
+Is vehicle loan interest deductible with standard mileage?
Yes, at your business-use percentage. Interest is not part of the standard rate.
+Can I switch from standard mileage to actual expenses?
Yes, provided the vehicle used standard mileage in its first business year. The reverse switch is blocked if you claimed accelerated depreciation first.
+Does the rate apply to a leased car?
Yes, but if you use standard mileage on a leased vehicle you must use it for the entire lease term.
About the author
Javed Niamat · Founder & Editor, GigTax
Javed Niamat founded GigTax to make self-employment tax math understandable for rideshare drivers, delivery couriers, creators and freelancers. He builds and maintains every calculator on this site and writes the guides that explain the numbers behind them.
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- Standard Mileage Rate 2026: The Complete IRS 70¢ Per Mile Guide2026 IRS standard mileage rate is 70¢/mile. Complete guide for gig workers: business miles, rules, examples, deductions, and how to track every mile.
- IRS Mileage Rate Guide: 2026 Rates, History, and How to Use ThemComplete IRS mileage rate guide for 2026: business, medical, and charity rates, historical rate chart, how the IRS sets the rate, and how to apply it on Schedule C.
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