Massachusetts Mileage Deduction 2026: What Self-Employed Filers Need to Know

Self-employed in Massachusetts? Your mileage deduction reduces both federal and state taxes. But Massachusetts has a wrinkle: the state requires its own Schedule C filing and does not conform to all federal provisions. Here is what that means for your mileage deduction.

The Savings

At the 2026 IRS rate of 72.5¢ per mile, here is what 15,000 business miles saves in Massachusetts:

If your income exceeds $1 million, Massachusetts adds a 4% surtax (the "millionaire's tax," effective 2023). At that level, the state portion of your mileage savings jumps to 9% on income above the threshold.

Massachusetts Requires a Separate Schedule C

This is the part most people miss. If you file a federal Schedule C, Massachusetts requires you to file a Massachusetts Schedule C as well. You cannot simply copy your federal numbers.

The good news for mileage: Massachusetts conforms to the federal standard mileage rate deduction. Your 72.5¢/mile deduction on federal Schedule C carries over to the Massachusetts Schedule C. The mechanics are the same, you just file it twice.

Where Massachusetts diverges from federal rules:

• No QBI deduction. The federal Qualified Business Income deduction (Section 199A) does not apply on your Massachusetts return. This does not affect your mileage deduction, but it means your overall Massachusetts taxable income will be higher than your federal taxable income.
• Some depreciation differences. Massachusetts does not conform to all federal depreciation rules. If you use the actual expenses method instead of the standard mileage rate, check the specific state depreciation schedules.

New in 2026: OBBBA Deductions for Gig Workers

The One Big Beautiful Bill introduced two new deductions that affect Massachusetts gig workers:

• $25,000 tip income deduction for rideshare and delivery drivers
• $12,500 overtime pay deduction

These are federal deductions. Whether Massachusetts conforms to them is still being determined by the Department of Revenue. Track this, it could add significant state savings for gig workers.

Who This Applies To

Massachusetts has one of the strictest independent contractor classification tests in the country (the "ABC test"). The state Attorney General has publicly stated that most gig workers are "already employees under Massachusetts law." In practice, rideshare and delivery platform workers still file as 1099 contractors and claim mileage deductions.

Home health aides, visiting nurses, and therapists drive between patient homes across Greater Boston and Western Mass, often making multiple stops per day. Construction and trades workers, most of whom need a state license, and many of whom are self-employed, drive between job sites across the state. Boston's tech corridor generates significant freelance and consulting work with regular client-site travel. And rideshare and delivery demand runs year-round in Boston, Worcester, and Springfield.

W-2 Employees: No Deduction, But Mandatory Reimbursement

W-2 employees cannot deduct mileage in Massachusetts. But Massachusetts requires your employer to reimburse business travel expenses. Violations carry treble damages. See the Massachusetts reimbursement guide.

FAQ

Does Massachusetts tax my mileage deduction differently?

The mileage deduction itself works the same, 72.5¢/mile on Schedule C. But Massachusetts requires a separate state Schedule C filing and does not conform to all federal deductions (notably, no QBI deduction).

Do I need a separate mileage log for Massachusetts?

No. Your federal IRS-compliant mileage log serves both returns. One log, two filings.

What is the Massachusetts income tax rate?

Flat 5% on most income. An additional 4% surtax applies to income above $1 million (adjusted annually for inflation).

Are gig workers considered employees in Massachusetts?

Massachusetts applies a strict ABC test for classification, and the AG has taken the position that many gig workers are employees. In practice, most rideshare and delivery drivers still file as 1099 and claim the mileage deduction. If your classification changes, you would instead be entitled to employer reimbursement under state law.

Can W-2 employees deduct mileage in Massachusetts?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. However, Massachusetts requires your employer to reimburse business travel expenses, with treble damages for violations.

Two Schedule C filings. One mileage log. Start tracking free with TruMile →