# Can I claim Vehicle / Mileage Expenses as a business expense in United States?

**Yes, fully claimable.** Yes, US self-employed people can claim vehicle expenses using either the standard mileage rate (70 cents a mile in 2025. In 2026 the rate is 72.5 cents from 1 January to 30 June and 76 cents from 1 July to 31 December) or the actual expense method (gas + insurance + depreciation × business %).

Typical amount: $3,000 to $15,000 depending on business miles. At the 2026 rate, 10,000 business miles is about $7,250 for January to June trips.

## What Internal Revenue Service (IRS) says

IRS publishes annual standard mileage rates. 2024: 67¢ business, 21¢ medical/moving, 14¢ charitable. 2025: 70¢ business. Alternatively, claim actual costs apportioned by business mileage. You generally cannot switch from actual to standard mileage method on a leased vehicle, but you can on owned vehicles after the first year if MACRS depreciation hasn't been used. For 2026 the IRS sets the business rate at 72.5 cents per mile for 1 January to 30 June and 76 cents per mile for 1 July to 31 December. The charity rate is 14 cents for the full year. The medical rate is 20.5 cents then 23.5 cents. A taxpayer applies the rate in force on the date of each trip, so the log must show dates.

## When you can claim

- Standard mileage rate × business miles (simplest, no records of actual costs needed)
- Actual expenses (gas, insurance, repairs, depreciation) × business %
- Tolls and parking on business trips (in addition to mileage)
- Section 179 deduction on heavy SUVs/trucks (>6,000 lb GVWR), up to $32,000 in 2026 ($31,300 in 2025)
- Trips from the office or main business location to a client, supplier or temporary work site

## When you cannot claim

- Commuting between home and a regular workplace
- Fines and parking tickets
- Personal use portion
- First and last commute of the day (deemed personal)
- Mileage on a vehicle used by employees for which you did not keep records of dates and business purpose

## Good to know

**Pro tip:** Keep a contemporaneous mileage log with date, destination, business purpose and miles. The IRS requires this to be kept 'as the trips are taken': reconstructed logs lose audits.

**Important:** Choose the method in the first year the car is used for business. A car that was depreciated using the actual method cannot generally return to the standard mileage rate. A leased car that uses the standard rate must use it for the whole lease. Tolls and parking are deductible on top of the standard rate.

Source: https://www.irs.gov/tax-professionals/standard-mileage-rates

## Related expenses

- [Section 179 Equipment Deduction](https://accounts-os.com/us/expenses/section-179-us)
- [Business Travel](https://accounts-os.com/us/expenses/travel-us)
- [Professional Services (Accountant, Lawyer)](https://accounts-os.com/us/expenses/professional-services-us)