The 2026 Mileage Deduction, With the Mid-Year Twist

The IRS changed the rate on July 1 — 72.5¢ became 76¢. Often one of a delivery driver's largest deductions, and the one most people under-track.

Split-year math handled Election rules explained Federal rules — not tax advice

Your deduction estimate

Your estimate appears here
Business miles only — and the record is the deduction. Ordinary commuting from home can be nondeductible; whether your first and last trips of the day count depends on facts like where your business "starts." The IRS expects records showing date, mileage, destination, and business purpose — and gives more weight to records kept at or near the time of driving (Pub 463). An estimate reconstructed in April is the weakest kind. If you drive multiple cars, figure each vehicle's miles separately.
Rates: IRS — 72.5¢/mi for business expenses before Jul 1 2026, 76¢/mi on or after Jul 1 2026 (IRB 2026-29); 70¢ for 2025. Parking/tolls additive, election rules: IRS Topic 510 & Schedule C instructions. Recordkeeping: Pub 463. Reviewed July 2026

Standard mileage vs actual expenses — and the trap in year one

You get one method per vehicle per year: the standard mileage rate, or your actual costs (gas, repairs, insurance share, depreciation). Most gig drivers with efficient cars do better on standard mileage — but the election rules have teeth. For a car you own, the IRS says you "must choose to use it in the first year the car is available for use in your business" — use actual expenses in year one and standard mileage is off the table for that car in later years. For a car you lease, choosing standard mileage commits you to it "for the entire lease period (including renewals)." First year with a new-to-you gig car? That choice matters beyond this April.

Worked example

8,000 business miles Jan–Jun + 7,000 Jul–Dec 2026: 8,000 × $0.725 = $5,800; 7,000 × $0.76 = $5,320 → $11,120 deduction, before adding business parking and tolls. At a 22% marginal rate plus SE tax effects, that's real money — for many drivers, one of the largest deductions on the return.

Why this pairs with the cost-per-mile page

Your actual cash cost per mile in an older car is often 30–40¢ while the deduction runs 72.5–76¢. Both numbers are legitimate — one is economics, one is tax law — and the gap between them is quietly the best part of gig-driving an efficient paid-off car. Just never mix them in one calculation: cash decisions use your cost, tax math uses the IRS rate.

Federal rules only; states can differ. This page explains, it doesn't advise — a tax professional applies these rules to your facts.