Standard mileage rate or actual expenses: which should I choose?

The standard mileage rate wins for most drivers: it is a flat amount per business mile, 72.5 cents in 2026, that covers gas, insurance, maintenance, repairs and depreciation without keeping a single receipt for them. Deducting actual expenses only becomes interesting for an expensive, recent vehicle used mostly for business, and it means keeping every bill and apportioning it to business use.

Two rules decide whether you still have the choice. For a car you own, you must use the standard rate in the first year the car is available for business; start with actual expenses and the standard rate is closed for that vehicle for good. Switching from the standard rate to actual expenses later is allowed, and switching back is allowed too. For a leased car, once you choose the standard rate you keep it for the entire lease, renewals included.

The choice is made per vehicle, not per taxpayer: you may use the standard rate on one car and actual expenses on another, each with its own mileage log. Tolls and parking are deductible on top of the standard rate; nothing else is, gas included.

Whichever method you choose, the IRS expects a contemporaneous log: for each trip, the date, the mileage, the destination and the business purpose. Kilevo keeps that log from your calendar and produces the annual mileage log with the rate per mile applied to each trip type. Drive 9,200 business miles in 2026 and the deduction is 9,200 × $0.725 = $6,670.

The IRS mileage rate 2026 page gives the rates by purpose, and mileage deduction on Schedule C shows where the number goes on the form. For your particular case, check with the IRS or your accountant.