If you're running late to a job site, it's easy to skip updating your mileage tracker and say you'll do it when you get back in your car. But then you get in your car and drive off to the next job site. Before you know it, your mileage log is woefully behind. After all, you're a busy business owner, and updating your mileage tracker is easy to put off until tomorrow.
Unfortunately, this means you're leaving unclaimed deductions on the table at tax time. Before you say it's not enough to matter, consider this: the average rideshare driver drives about 50,000 miles per year for work. In 2026, that rideshare driver could have a total deduction of $36,250.
Learning how to track business miles for taxes and finding the best method for you is the best way to ensure you get your maximum deductions each year.
Unless you're a freelance accountant, the self-employment and freelancer tax deductions can seem overwhelming for independent contractors and gig workers. One of the most common deductions for these types of workers is related to the vehicle used for work.
Tracking business mileage reduces your taxable income. As a result, you'll either pay less in taxes or—every business owner's dream—get a refund.
The three main ways to track miles for taxes are: (1) pen and paper using a physical logbook, (2) digital records using apps or spreadsheets, and (3) a hybrid approach combining both methods. The IRS usually requires you to log the date, purpose, starting/ending location, and total mileage for each business trip. Whichever method you choose, accuracy and consistency are key to maximizing your deduction and protecting yourself in an audit.
Business mileage is typically the miles you drive for work-related purposes—such as traveling to client sites, running business errands, or attending off-site meetings. The IRS usually allows self-employed individuals, gig workers, and small business owners to deduct these miles on their taxes.
There are two options for deducting vehicle expenses:
Standard mileage method
Actual expenses
Regardless of which method you choose, you’ll need to know how many miles you drove.
People who work in the following industries often track mileage: rideshare, food delivery services, construction, real estate, home healthcare, mobile repair and maintenance, and sales.
You can typically track miles for any travel from the office for business purposes. These instances include: travel from your office (even if it's a home office) to another worksite and back, travel from your office to a second business location and back, running business-related errands, driving a client (for example, picking them up from the airport when they arrive in town for a meeting), driving to and from a lunch meeting, and attending a conference in an area other than where you work.
No, you typically cannot deduct your commute. Driving from your home to your regular office—and back home again—doesn't usually count as business mileage, even if you're self-employed. Only trips from your office to other work locations typically qualify.
The IRS regularly updates the standard mileage rate to reflect inflation and other factors. The 2026 standard mileage rate is 72.5 cents per mile ($0.725), so the mileage tax deduction adds up quickly.
To calculate your total deduction, multiply the miles driven per year by the mileage rate (0.725 in 2026).
For example, if you're a realtor and you drove 8,500 miles in 2026 driving for work, you would multiply that by 0.725. Your total deduction for the year would likely be $6,162.50.
You need to keep a mileage log to file a business mileage deduction. Like any other self-employed expense reporting, your mileage tracking must be as accurate as possible to ensure you get the maximum deduction—and to protect you in the event of an IRS audit.
Your mileage log should include the following for each trip:
Total mileage of the trip
Purpose of the trip
Date of the trip
Starting location
Ending location
Update your log after every trip for the most accurate records. Now that we’ve established that tracking miles is important. But exactly how do you do it? There are three main methods for tracking your mileage.
The pen-and-paper method is the old-school physical logbook. You can purchase one online or at an office supply store or create a template and print it off yourself.
There are several pros to this analog method:
It’s familiar.
No technology is required.
It’s inexpensive.
However, the pen-and-paper method has its cons:
It is time-consuming to record everything by hand.
The logbook can be physically misplaced or damaged.
You can’t easily search for specific entries or sort data to find driving trends.
You can also opt to record your business mileage digitally. In this method, you can use a spreadsheet stored in the cloud that you update manually or a mileage tracker app. Either way, your mileage data is stored digitally.
The digital record method has some powerful advantages:
An app or tracking device can upload mileage data in real-time.
You don’t have to worry about losing or damaging a paper logbook.
You can easily export a mileage report.
The data is easily searchable and sortable to find trends.
Updates are automatic and math is calculated for you, make it less time-intensive
There are fewer errors.
You don't need an additional device if the app is on your phone.
That’s a long list of pros, but there are some drawbacks to this method:
You still have to manually enter some data, such as the purpose of the trip.
Tracking devices raise some privacy concerns.
Batteries on devices can die and not record data.
Technology and app subscriptions can be costly.
The third option to track your business mileage is a hybrid approach. In this method, you use a mix of pen-and-paper and digital records to keep track of your mileage data. This is a good method for anyone interested in trying digital tracking but would like to leave the comfort of the pen-and-paper way.
For example, you might use a tracker and keep a pen-and-paper log that you fill out on each trip. Then you can compare the mileage data in the tracker to the numbers in your pen-and-paper log for accuracy.
You might also choose to keep a pen-and-paper logbook and use your phone to make digital notes when you forget the logbook at the office. When you return to the office or find your logbook, you update the records using the data on your device.
This hybrid approach is the most flexible and when you do both methods simultaneously, the most accurate. However, if you constantly switch or forget to consolidate all your logs into one place, this can be the most error-prone method.
There is no right or wrong way to track your business mileage as long as the data is accurate and complete.
If you can keep a pen-and-paper logbook consistently updated, that may work well for you. But if you tend to forget, an app that automatically records your trips is the more reliable choice.
Digital apps save the most time since many log trips automatically and calculate totals for you. With pen and paper, you'll need to manually add up every trip—which can be a lot of math if you're driving daily.
Keep your records in one accessible place. Getting an audit letter is stressful enough—don't add "track down mileage notes on napkins" to the list. Organized data also helps you spot trends in your driving habits and budget more accurately for gas and vehicle expenses.
Regardless of which method you choose, keep your records for at least three years in the event of an IRS audit.
Tracking your business mileage should be treated with the same care and diligence as your bookkeeping. Whatever method you choose to track miles for taxes, it’s imperative that you are consistent and accurate.
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The information on this website is not intended to provide, and should not be relied on, for tax or legal advice.
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