Mileage Deduction Gets Boost for Second Half of 2026

Here are several other tips to make the most out of your vehicle deduction:

• Track your mileage throughout the year. Keep a mileage log or use a mileage-tracking app that records the date, destination, business purpose, and miles driven. Good records are essential if the IRS ever questions your deduction.

• Know which trips qualify. Only business miles are deductible. Driving to meet clients, visit job sites, attend networking events, make bank deposits, purchase supplies, or travel between business locations generally qualifies. Your normal commute between home and your regular workplace does not.

• Remember parking and tolls. Parking fees and tolls related to business travel are generally deductible in addition to the standard mileage rate. These costs are often overlooked but can add up over the course of a year.

• Separate business and personal driving. Keep business and personal mileage clearly separated. Recording your beginning and ending odometer readings each year can help support the percentage of business use if questions ever arise.

• Choose the right deduction method. The standard mileage rate is not always the best option. If you drive an expensive vehicle or have unusually high operating costs, deducting your actual vehicle expenses may produce a larger tax deduction. Compare both methods before making a decision because your choice in the first year can affect your options in future years.

Several other things to remember:

• These rates apply to gas, electric, hybrid-electric, and diesel-powered vehicles.

• You cannot claim mileage as an itemized deduction as an employee if you aren't reimbursed for travel expenses.

• Claiming a mileage deduction for moving expenses is not allowed unless you are an active member of the Armed Forces and are ordered to move to a new permanent duty station