Mileage Deduction
Driving between sites is one of the biggest write-offs a Field Nation, WorkMarket, or direct-client technician has. This guide explains the 2026 mid-year rate change, what the rate covers, which miles count, and how to keep records that hold up. It is planning education for federal estimates — not tax advice.
Federal figures reviewed as of 2026-07-15 — planning estimates only, not tax advice.
For 2026 the IRS business standard mileage rate is split mid-year: 72.5 cents per mile for miles driven January 1 through June 30, then 76 cents per mile from July 1 onward (IRS Announcement 2026-11). You apply each rate to the miles you drove in that part of the year, so a full-year deduction is really two calculations added together — not one flat rate.
For all of 2025 the IRS business standard mileage rate was a flat 70 cents per mile (IRS Notice 2025-5). Unlike 2026, there was no mid-year change, so every business mile in 2025 uses the same 70-cent figure.
Yes. Business-related parking fees and tolls are deductible in addition to the standard mileage rate. What the per-mile rate already covers is gas, oil, maintenance, insurance, registration, and depreciation, so you should not deduct those separately when you use the standard method.
For 2026 the IRS set the business standard mileage rate mid-year. Miles driven from January 1 through June 30, 2026 are deducted at 72.5 cents per mile, and miles driven from July 1, 2026 onward are deducted at 76 cents per mile (IRS Announcement 2026-11, which raised the rate effective July 1). This is unusual — most years the rate is set once — so it is easy to get wrong.
Practically, a full-year 2026 deduction is two calculations added together: your first-half miles times 72.5 cents, plus your second-half miles times 76 cents. Treating 2026 as a single flat rate will misstate your deduction, which is why splitting your mileage log at July 1 matters. For contrast, 2025 was a flat 70 cents per mile for the entire year (IRS Notice 2025-5).
72.5 cents per business mile. Log every site-to-site trip in the first half of the year at this rate.
76 cents per business mile (Announcement 2026-11). Only miles on or after July 1 use the higher rate.
70 cents per business mile, flat all year (Notice 2025-5). No mid-year split.
The standard mileage rate is meant to stand in for the ordinary running costs of your vehicle: gas, oil, routine maintenance and repairs, tires, insurance, registration, and depreciation. When you use the standard method, you do not also deduct those costs separately — they are baked into the per-mile figure.
Parking fees and tolls tied to a business trip are deductible on top of the mileage rate. So the paid garage at a downtown data-center job or the toll road between two calls is a separate line from your miles. Keep those receipts alongside your log.
You have two ways to deduct vehicle costs. The standard mileage method multiplies your business miles by the IRS rate — simple, and it only needs a mileage log. The actual-expense method adds up what you really spent on the vehicle (fuel, repairs, insurance, lease or depreciation) and deducts the business-use percentage, which can be worth more if you drive an expensive vehicle few miles.
There is a rule that trips up a lot of techs: for a vehicle you own, if you ever want the flexibility to switch between the two methods in later years, you must use the standard mileage rate in the first year you put that vehicle into business use. Start with actual expenses in year one and you are generally locked into actual expenses for that vehicle. TechLedger models the standard-mileage method for its planning estimates; if you think actual expenses fit your situation, that is a good question for a tax professional.
Not every mile counts. The drive from your home to a regular place of work — and back — is commuting, which is never deductible. What counts as business mileage is travel between work locations during your day: leaving one job site for the next, running to a supply house for a part mid-job, or driving to a client after starting from a business location.
A qualifying home office changes the math. If part of your home is your principal place of business — where you handle scheduling, invoicing, and admin — trips from that home office out to job sites can be business miles rather than nondeductible commuting. The home-office test is strict (regular and exclusive business use), so treat it carefully. For how mileage folds into your overall picture, see the 1099 field tech tax guide.
Whichever method you use, the deduction lives or dies on your records. The IRS expects a contemporaneous log — one you keep at or near the time of each trip, not reconstructed from memory months later. For each business drive, record the date, the business purpose, the destination, and the miles; also note your odometer reading at the start and end of the year so you can show total versus business mileage.
A dedicated mileage app, your phone's trip history, or a paper notebook in the truck all work — the point is that it is timely, consistent, and separates business miles from personal and commuting miles. Good mileage records also feed your quarterly estimated tax planning, since a bigger mileage deduction lowers the net profit your estimated payments are based on.
Mileage deduction basics for 1099 technicians
Generally no. The drive between your home and a regular workplace is nondeductible commuting. Travel between job sites during the day is deductible business mileage. If you have a qualifying home office that is your principal place of business, trips from that home office to work sites can count as business miles rather than commuting.
The standard mileage rate is simpler and only needs a mileage log; the actual-expense method deducts your real costs (gas, repairs, insurance, depreciation) times your business-use percentage. A key rule: if you want the option to switch between methods on a vehicle you own, you must choose the standard mileage rate in the first year the vehicle is used for business. TechLedger models the standard-mileage method for planning estimates.
Keep a contemporaneous log — recorded at or near the time you drive — showing the date, business purpose, destination, and miles for each trip, plus your total annual mileage. A mileage-tracking app or a notebook both work as long as the record is timely and consistent. Reconstructing a year of miles from memory in April is exactly what the IRS tends to disallow.
TechLedger applies the correct 2026 split rate (72.5c through June 30, 76c from July 1) to your logged miles and rolls the deduction into a federal profit-and-tax estimate — all in your browser, nothing sent to a server. It is for planning, not tax advice, and it covers federal figures only; state and local taxes should be checked separately. See how the pieces fit in the 1099 tax overview, quarterly estimates, Field Nation reporting, and WorkMarket reporting, or read more on the blog.