Mileage Deduction for Electric Vehicles (2026)

Electric vehicles get the same 72.5¢ standard mileage rate as gas-powered vehicles in 2026. The IRS does not distinguish between fuel types when applying the standard mileage rate. The same rules, the same forms, the same recordkeeping.

Why the rate is identical

The standard mileage rate is intended to capture the AVERAGE cost of operating a personal vehicle for business across the country. The methodology bundles fuel, insurance, registration, maintenance, and depreciation into a single per-mile figure. EVs have lower fuel costs but typically higher purchase prices and depreciation, so the per-mile total operating cost is in the same ballpark as gas vehicles.

When EV drivers should consider actual expenses

EV ownership economics differ from gas vehicles. Three scenarios where the actual expenses method may beat the standard rate for EV owners:

• High-cost EVs in year one. A $90,000 luxury EV used 80% for business has an enormous depreciation deduction in year one under MACRS plus Section 179, often dwarfing what 72.5¢/mile would generate.
• Low business mileage. If you drive only a few thousand business miles a year in an expensive EV, the proportional depreciation deduction may exceed the per-mile total.
• Heavy SUV class EVs. EVs over 6,000 lbs gross weight (Rivian R1S, certain Tesla models, Ford F-150 Lightning) qualify for the same enhanced Section 179 + bonus depreciation as gas trucks. This can produce $40,000+ in year-one deductions for high-business-use trucks.

Federal EV tax credits are separate

The federal EV tax credit (up to $7,500 for qualifying new EVs) is independent from the mileage deduction. You can claim both. The credit reduces your tax owed, the mileage deduction reduces your taxable income. They do not overlap.

Charging at home

If you charge at home and use the standard rate, your home electricity costs are already baked into the 72.5¢ figure (which assumes some mix of home-charging and public-charging electricity costs). You cannot also deduct your electric bill separately.

If you use actual expenses, you can deduct the business-use percentage of your home charging electricity. This requires either a separate sub-meter for the EV charger or a careful estimate based on the EV's annual kWh consumption.

Documentation is identical

EV drivers maintain the same contemporaneous log as gas drivers: date, destination, business purpose, miles. The four required IRS fields. See the full log requirements.

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