The Freelance Mileage Deduction
Short answer: if you drive for your freelance business, you can deduct those miles two ways. The standard mileage rate multiplies your business miles by a flat per-mile figure (around 70¢ a mile for 2026 — always confirm the current IRS rate) and covers gas, wear, insurance and depreciation in one number. The actual expense method deducts the business percentage of every real car cost. Here's which drives count, how to track them, and which method usually wins.
Car costs are one of the biggest deductions freelancers leave on the table — and they lower the profit your self-employment tax is calculated on. The free Freelance Rate Calculator → shows what you actually keep after tax, and clean mileage records directly improve that number.
Which miles actually count?
Only business driving is deductible — and the line matters:
- Deductible: driving to a client site or meeting, to a job, to pick up supplies, to the bank for business, or between two work locations.
- Not deductible: your commute — driving from home to a regular workplace — and any personal trips.
One key break for freelancers: if you have a qualifying home office as your principal place of business, trips from home to clients are usually business miles, not a commute. That can turn a lot of "commuting" into deductible driving.
The two methods compared
| Standard mileage rate | Actual expense method | |
|---|---|---|
| How it's figured | Business miles × the IRS rate | Business-use % × actual car costs |
| What it covers | Gas, repairs, insurance, depreciation — all in one rate | Gas, repairs, insurance, lease/depreciation, registration |
| Records needed | A mileage log | A mileage log and every receipt |
| Best when | Fuel-efficient car, lots of miles | Expensive car, high running costs, fewer miles |
One rule to know: if you want to use the standard rate for a car, you generally must choose it in the first year you use that car for business. So decide early.
Want to see what a deduction is really worth to you? Use the free Freelance Rate Calculator → to see your take-home after self-employment and income tax. Every business mile lowers the profit those taxes hit, so the calculator shows the real cash a clean log puts back in your pocket.
How to log miles without losing your mind
The deduction lives or dies on your log. The IRS wants the date, the business purpose, and the miles for each trip. You don't need anything fancy:
- Use an app that tracks drives automatically, then swipe each one business or personal.
- Or a simple sheet — date, where you went, why, start and end odometer. One row per trip.
- Record your odometer on Jan 1 so you know your total miles for the year; business ÷ total gives the percentage the actual-expense method needs.
Reconstructing a year of miles from memory in April is how deductions get denied. A few seconds per trip is the whole job.
A worked example
You drove 6,000 business miles this year in a paid-off, fuel-efficient car. The standard method gives 6,000 × ~$0.70 = $4,200. Your actual costs — gas, insurance, repairs, registration — were $7,000 for the year, and business use was 40% of total miles, so the actual method gives 40% × $7,000 = $2,800. Here the standard rate wins by $1,400, because an efficient, already-paid-off car has low real costs per mile.
Flip the car to an expensive SUV with a loan and high insurance and the actual method often wins. The only way to know is to keep the mileage log either way — then run both.
Watch-outs
- No double-dipping — the standard rate already includes gas and repairs, so you can't deduct those separately on top of it.
- The commute is never deductible — home to a fixed workplace is personal, even if you check email on the way.
- Keep the log for the whole year — a contemporaneous record beats a spreadsheet built the night before your taxes are due.
Mileage is one line on a longer list — see the full freelance tax deductions checklist and fold the savings into your quarterly estimated taxes so you don't overpay through the year.
Put every deduction into one number
Deductions only matter if you know what they do to your take-home. The $9 Freelance Rate & Tax Calculator spreadsheet nets your income against self-employment tax and expenses so you can see exactly what a mileage write-off saves you — and set a rate that accounts for it. Invoicing clients too? Get the calculator + invoice template in the $14 Starter Pack →
Frequently asked questions
What is the mileage deduction for freelancers in 2026?
Freelancers can deduct business driving using the standard mileage rate, which is about 70 cents per business mile for 2026 (confirm the current IRS rate, as it is set each year). You multiply your business miles by that rate, and it covers gas, repairs, insurance and depreciation in a single figure. The alternative is the actual expense method.
Can I write off my commute as a freelancer?
No. Driving from home to a regular workplace is a personal commute and is never deductible. However, if you have a qualifying home office as your principal place of business, trips from home to clients or job sites are generally treated as deductible business miles rather than commuting.
Standard mileage rate or actual expenses — which is better?
The standard rate usually wins for fuel-efficient or paid-off cars driven a lot of business miles, because it is simpler and the real cost per mile is low. The actual expense method tends to win for expensive cars with loans, high insurance and big repair bills. Keep a mileage log either way and calculate both to see which is larger.
What records do I need for the mileage deduction?
You need a mileage log showing the date, business purpose and miles for each trip. For the actual expense method you also need receipts for gas, insurance, repairs, registration and any lease or loan costs, plus your total annual miles so you can figure the business-use percentage.
Do I have to choose the standard rate in the first year?
Generally yes. To use the standard mileage rate for a car, you usually must choose it in the first year you use that car for business. If you start with the actual expense method, switching to the standard rate later can be restricted, so decide early.