Mileage Tracking for Business: Methods, Rates, and Deductions
Tax Strategy · 2026-02-18 · 6 min
Business mileage is deductible, but only if you track it properly. Here is how to choose between the standard mileage rate and actual expenses, and how to keep records that survive an audit.
If you use your personal vehicle for business, you can deduct the cost using either the standard mileage rate or actual expenses. The standard mileage rate for 2026 is set annually by the IRS and covers gas, depreciation, insurance, and maintenance in a single per-mile deduction. Actual expenses require tracking every vehicle cost and applying the business-use percentage.
The standard mileage rate is simpler: log the miles and multiply. For most people who drive under 15,000 business miles per year, it is also more favorable. Actual expenses become more advantageous when you drive an expensive vehicle with high costs per mile, or when your business-use percentage is very high.
Regardless of which method you choose, you must keep a contemporaneous log. This means recording each trip close to when it happens — not reconstructing it at year end. For each trip, record the date, destination, business purpose, and miles driven. The IRS specifically disqualifies logs that appear to be reconstructed.
Digital mileage tracking apps solve the logging problem by recording trips automatically via GPS. Most offer trip classification (business vs personal) with a simple swipe. The log is time-stamped and tamper-evident, which is exactly what auditors want to see. If you claim mileage deductions, use an automatic tracker.
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