The IRS announced the standard mileage rate for 2026 is 72.5 cents per mile for business use. This is the rate delivery drivers, rideshare drivers, and other gig workers use to calculate their vehicle expense deduction — without tracking actual gas, maintenance, or insurance costs.
- 2026 IRS standard mileage rate is 72.5¢/mile — the highest rate in years
- Driving 20,000 miles for gig work = $14,500 tax deduction
- Mileage rate applies from first delivery mile — includes driving to pickup location
- You must choose mileage or actual expenses — cannot switch mid-year
- Use a mileage tracking app — IRS requires a contemporaneous log for audit protection
Self-employed individuals must pay estimated taxes quarterly if they expect to owe at least $1,000 in federal tax for the year.— IRS.gov — Self-Employed Tax Center
Mileage Rate History: How 2026 Compares
How Much Can You Save? (By Miles Driven)
Standard Mileage vs. Actual Expenses: Which Is Better?
You can only choose one method per vehicle per year. Once you use actual expenses in the first year, you cannot switch to standard mileage later. If you use standard mileage first, you can switch to actual expenses in future years.
- Simple — just track miles
- No fuel receipts needed
- Good for fuel-efficient cars
- Can switch to actual in future years
- Track gas, repairs, insurance
- Depreciation included
- Better for gas-guzzlers or luxury cars
- More complex recordkeeping
For most gig workers, standard mileage is simpler and often yields a larger deduction — especially if you drive a fuel-efficient car. Run the numbers both ways if you have a high-expense vehicle.
How to Track Miles for the IRS
The IRS requires a contemporaneous mileage log — meaning you record trips at or near the time they happen, not months later from memory. Your log should include:
- Date of each trip
- Starting location and destination
- Business purpose (e.g., "DoorDash delivery — order #12345")
- Odometer reading OR total miles for the trip
- Total business miles for the year