MILEAGE RATES AND VEHICLE DEDUCTION CLAIMS

Beginning January 1, 2026, the standard mileage rate for business use of a vehicle is 72.5 cents per mile. During 2025, the standard mileage rate was .70 cents per mile. You can take a tax deduction for the business use of your vehicle by using either the standard mileage rate or by taking actual vehicle expenses and the related depreciation. Vehicles for which drivers claim the IRS’s standard mileage rate are not eligible for depreciation expense.

If you use your vehicle for both business and personal driving, you must split the expenses based on your actual mileage. In this case, you are required to keep a detailed and accurate log of all business trips for each vehicle. Examples of information to be logged include the date of the trip, beginning and ending odometer readings, mileage driven, destination, specific business purpose for the trip, and other expenses incurred ( e.g., parking and tolls). IRS rules dictate such a log must be maintained in a timely fashion.