Mileage Tax Deduction for the Self-Employed
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In this guide
For a lot of self-employed people, vehicle mileage is one of the largest deductions on their entire return — and one of the most heavily scrutinised. Getting the mechanics right, from what counts as a business mile through to how it's reported on Schedule C, makes the difference between a clean deduction and an audit headache.
TL;DR
Self-employed workers deduct business vehicle use on Schedule C, either via the standard mileage rate (72.5¢/mile before July 1, 2026, 76¢/mile after) or by tracking actual vehicle expenses and applying a business-use percentage. Commuting never counts. Keep a contemporaneous log — reconstructed logs rarely survive an audit.
Who this applies to
If you are self-employed — whether as a sole proprietor, freelancer or independent contractor — you can deduct the business use of your vehicle directly on Schedule C. The 2026 IRS standard mileage rate is 72.5 cents per mile through June 30, then 76 cents per mile from July 1 after a rare mid-year increase — see our full explainer on the 2026 rate change for why the IRS made that unusual move.
What counts as a business mile
- Driving to a client or customer location.
- Driving between two business locations.
- Travel to a bank, post office, or supply store for business purposes.
- Travel to a temporary work site away from your usual place of business.
What does NOT count
- Driving from home to your primary place of business (commuting is not deductible, under any circumstances).
- Personal errands, even if they occur during a work trip or are combined with a business stop.
- Miles driven for an employee job when you have both employee and self-employed income — those two income streams are tracked separately.
| Standard mileage rate | Actual expenses | |
|---|---|---|
| How it's calculated | Business miles × IRS rate | Total vehicle costs × business-use % |
| Receipts required | No, for vehicle costs specifically | Yes, for every cost category |
| Best for | Simpler recordkeeping, lower-cost vehicles | Higher-cost vehicles with significant running costs |
| Method lock-in | Can switch in later years, with conditions | Once chosen for a vehicle, generally must continue |
Standard mileage vs actual expense method
Standard mileage vs. actual expenses
You can choose between the standard mileage rate (72.5 cents before July 1, 76 cents after — the simpler method) or tracking actual vehicle expenses (gas, insurance, oil changes, depreciation) and multiplying the total by your business-use percentage. You must choose in the first year you use the vehicle for business, and the rules around switching methods in later years differ depending on which one you picked first.
“If you use your car in your business, you can deduct car expenses using either the standard mileage rate or actual car expenses.”
— Internal Revenue Service, IRS Publication 463, irs.gov
How to report on Schedule C
Enter vehicle expenses on Part II, Line 9 (Car and truck expenses). In Part IV of Schedule C, report total miles, business miles, commuting miles and personal miles for the year, and whether you have evidence to support the business-use claim — the IRS specifically asks whether that evidence is written, which is exactly why a proper mileage log matters.
Records to keep
Keep a contemporaneous mileage log: date, starting and ending location, business purpose and miles for every trip. The IRS scrutinises vehicle deductions heavily precisely because they're easy to overstate — reconstructed logs based on memory, built months later at tax time, are not reliable evidence in an audit. Our mileage reimbursement calculator helps total trips accurately as you go.
Can a self-employed person deduct mileage without receipts?
Under the standard mileage method, you don't need vehicle-cost receipts, but you do need a contemporaneous log of dates, purpose, and miles for each trip.
Does commuting count as a deductible business mile for the self-employed?
No — driving from home to your primary place of business is personal commuting and is never deductible, regardless of employment type.
Can I switch between standard mileage and actual expenses each year?
The rules depend on which method you chose first for that vehicle; switching later is possible in some cases but comes with specific IRS conditions.
Where do I report vehicle mileage on my tax return?
Self-employed filers report it on Schedule C, Part II Line 9, with supporting mileage detail in Part IV of the same form.
Calculate it now
Use the free GSA per diem and IRS mileage calculators.