Mileage Tax Deduction for the Self-Employed

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.

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).
• Personal errands, even if they occur during a work trip.
• Miles driven for an employee job when you have both employee and self-employed income.

Standard mileage vs. actual expenses

You can choose between the standard mileage rate (72.5 cents for 2026, simpler) or tracking actual vehicle expenses (gas, insurance, oil changes, depreciation) and multiplying by business-use percentage. You must choose in the first year you use the vehicle and may need to stick with that method for that vehicle.

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.

Records to keep

Keep a contemporaneous mileage log: date, starting and ending location, business purpose and miles. The IRS scrutinises vehicle deductions heavily — reconstructed logs based on memory are not reliable in an audit.