Driving to client meetings, photography shoots, job sites, or supply runs is a legitimate deductible business expense. The IRS gives self-employed taxpayers two ways to claim vehicle deductions: the standard mileage rate or actual expenses.
Option 1: The 2025/2026 Standard Mileage Rate
The standard mileage rate allows you to deduct a flat rate per business mile driven (67 cents per mile in 2024; updated annually by the IRS for fuel and maintenance costs). In addition to the mileage rate, you can separately deduct 100% of business-related parking fees and bridge/highway tolls.
Example: Driving 6,000 business miles in a year yields an immediate $4,020 deduction on Schedule C.
Option 2: The Actual Vehicle Expense Method
Under this method, you track 100% of your total vehicle operating costs for the entire year and multiply that total by your business-use percentage (business miles ÷ total miles driven).
Eligible expenses include: gasoline and oil changes, insurance premiums, registration and license fees, repairs, new tires, vehicle lease payments or annual depreciation.
The Critical First-Year Choice Rule
If you want to use the standard mileage rate for a vehicle you own, you must choose it in the first year the car is used for business. In later years, you can switch back and forth between standard mileage and actual expenses. If you choose actual expenses in year one, you are locked into actual expenses for the life of that vehicle.
How to Maintain an IRS-Compliant Mileage Log
The IRS requires contemporaneous records showing: the date of each trip, starting location and destination, exact mileage, and the business purpose. Using automated GPS tracking apps like MileIQ, Everlance, or Hurdlr guarantees bulletproof documentation.