Quick guide · 3 min read
Standard-mileage method
The standard mileage rate, set by the IRS each year, covers fuel, maintenance, insurance and depreciation in one number. You multiply your business miles by the rate and add business parking and tolls.
- Who it fits
- Owners who drive a lot in an economical car and want simple records.
- Figures
- 2026 tax year
The key rule
Business miles × the IRS rate for the year, plus business parking and tolls. Commuting miles never count.
4 steps
Choose it in the first year
To keep the option for an owned vehicle, use standard mileage in the first year the vehicle is used for business. You can switch to actual expenses later.
Know what counts as a business mile
Trips to clients, job sites, suppliers, the bank for business and between work locations. Driving from home to your regular office is commuting, unless your home is your principal place of business.
Keep a mileage log
An app that tracks trips automatically is the easiest way.
Send us the total
We apply the rate for the year when we prepare your return. The IRS announces it each December.
Example
A consultant
You drive 9,000 business miles a year in a reliable sedan, plus $600 of parking and tolls. At a rate of around 70 cents a mile, that is a deduction of about $6,900. Your actual business share of costs would likely be lower, so standard mileage wins.
Common mistakes
- S corp owners should be reimbursed through an accountable plan rather than deducting miles personally. See the mileage reimbursement guide.
- Rounding to a convenient number at year-end with no log.
- Counting commuting miles.
Key dates
- December
- The IRS announces next year’s rate.
Questions we hear
Can I use standard mileage for a leased car?
Yes, but if you choose it for a leased car, you must use it for the whole lease.
Can I deduct my car loan interest too?
Self-employed people can deduct the business share of car loan interest on top of the standard rate. Employees cannot.
General education for TaxSquad clients, not advice for your situation. Rules and figures change. Talk to us before acting on this guide.