mileage
IRS mileage rate, explained for gig drivers
The standard mileage rate is usually the highest-leverage deduction for rideshare and delivery drivers. The catch: you need contemporaneous logs, not a January reconstruction.
- 2026 has two rates: 72.5¢/mi (Jan 1–Jun 30) and 76¢/mi (Jul 1–Dec 31) — split your miles by half of the year.
- Log business miles the day you drive — apps with automatic trip detection beat manual entries.
- Commute from home to your first gig is usually personal; miles between gigs are business.
- Keep a backup export of trips in case the IRS asks for support years later.
The 2026 rate changed midyear
For 2026 the IRS set two business standard-mileage rates: 72.5¢ per mile for miles driven January 1–June 30, and 76¢ per mile for miles driven July 1–December 31, reflecting higher fuel costs in the second half of the year. Apply each rate only to the miles driven in that window — a driver with 5,000 first-half and 6,000 second-half business miles deducts 5,000 × $0.725 ($3,625) plus 6,000 × $0.76 ($4,560), for $8,185 total. Use the mileage deduction calculator to do this automatically.
Standard rate vs actual expenses
Most drivers choose the IRS standard mileage rate because it is simple and often beats gas + maintenance receipts. Once you pick a method for a vehicle in a tax year, switching mid-year is restricted — decide early with your tax software or preparer.
What to log
Date, miles, business purpose, and start/end locations are the core fields. Everlance and Gridwise capture this automatically from GPS. Review weekly and reclassify personal trips before they pollute your year-end export.
Pair mileage with banking
Mileage deductions lower taxable income; they do not put cash in your pocket on payday. Keep using a tax set-aside so quarterly payments still clear even when deductions look strong on paper.