Standard Mileage Rate
Quick definition
The IRS-published per-mile deduction amount. 72.5 cents per business mile for 2026.
The standard mileage rate is a single number the IRS publishes each year that captures the average cost of operating a vehicle. Multiply your business miles by the rate, and that is your deduction. For 2026, the rate is 72.5 cents per business mile, 22 cents for medical or moving (limited cases), and 14 cents for charitable driving.
What the rate already includes
The standard rate covers gas, oil, maintenance, insurance, registration, lease payments, and depreciation. You cannot also deduct those expenses separately. You CAN still deduct parking, tolls, and the business-use portion of personal property tax.
When to use it
Most self-employed drivers use the standard rate because the math is simpler and the recordkeeping burden is much lower than the actual expenses method. See the side-by-side comparison.
First-year rule
You must use the standard rate in the first year you put a vehicle in service if you want to keep the option to switch later. Use actual expenses in year one and you are locked into actual expenses for that vehicle's life.
Related terms
Actual Expenses Method
Deduct real vehicle costs times your business-use percentage, instead of using a flat per-mile rate.
Depreciation
Deducting the purchase cost of a business vehicle over its useful life, instead of all at once.
Business-Use Percentage
Business miles divided by total miles. Used to scale the actual-expenses deduction.
Schedule C
The federal form self-employed workers use to report business income and expenses, including the mileage deduction.
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