Use the rate in effect when the driving occurred. Keep the date, destination, business purpose and mileage, along with total annual use. Personal travel and ordinary commuting are not business mileage; temporary work locations and a qualifying principal-place-of-business home office can affect the analysis.
The method is not available for every vehicle or situation. Prior depreciation choices and leased-vehicle rules matter. Do not separately deduct fuel, insurance, repairs or depreciation already represented by the mileage allowance. Eligible business parking and tolls can be separate.
An example
Hypothetical: 7,500 eligible business miles in each half of 2026 produce $5,437.50 plus $5,700, or $11,137.50. This is the mileage expense amount before any other applicable limitations, not a tax refund.
Reviewed October 7, 2026. IRS reference ↗
This is a general reference. Discuss how the rules apply to your business with your tax professional.