2026 Updated Optional Standard Mileage Rates

January 8, 2026

Standard mileage rate for the use of a car (also vans, pickups or panel trucks) was updated effective on January 1, 2026 as the table below. 

* Federal law only allows a moving expense deduction for active-duty military

Businesses generally can deduct the entire cost of operating a vehicle for business purposes. Alternatively, they can use the business standard mileage rate, subject to some exceptions. The deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Self-employed individuals also may use the standard rate.

The use of standard mileage rate has the advantage that taxpayers do not need to keep records of actual vehicle expenses. However, even with the standard mileage rate, it is necessary to record details such as the date, location, mileage, and purpose. Below is the example of a mileage log.

You can download the template here, if you would like use it. (appendix A)

When standard mileage rate method is selected, actual vehicle-related expenses such as maintenance and repairs, gasoline and oil, depreciation, insurance, vehicle registration, and permits are not separately deductible.

Individual Income Tax Filing

§70110 of the OBBBA made permanent the disallowance for most miscellaneous itemized deductions that are subject to the 2% of adjusted gross income floor under §67. That means unreimbursed employee travel expenses also cannot be deducted, unless you are a member of a reserve component of the U.S. Armed Forces, a state and local government official paid on a fee basis, or a qualified performing artist.

Therefore, except for self-employed individuals filing Schedule C or the very narrow category of qualified individuals above, unreimbursed travel expenses are not deductible for individual income tax purpose.