Self-Employed Mileage Deduction Rules (2025–2026)
If you're self-employed and use your own car for work, you can deduct the business use of that car. Here are the rules that decide how much, and what you have to keep to claim it.
Who qualifies
The mileage deduction is for people whose driving is part of running a business: 1099 contractors, gig and delivery drivers, sole proprietors, freelancers, and small-business owners. Employees generally can't deduct unreimbursed mileage under current US rules — this is a self-employed benefit.
Standard rate vs actual expenses
The two methods
| Method | What you deduct | Records needed |
|---|---|---|
| Standard mileage | Business miles × yearly rate ($0.70/mi, 2025) | A mileage log |
| Actual expenses | Business share of gas, repairs, insurance, depreciation | Every receipt + a mileage log |
Both methods need you to know your business mileage — either to multiply by the rate, or to work out the business percentage of your costs. So a reliable mileage log is required no matter which you pick. Most self-employed drivers choose the standard rate for its simpler records.
Which trips count
Deductible: driving to clients, between job sites, to pickups and deliveries, and from a qualifying home office to a work location. Not deductible: your commute to a regular workplace, and personal trips. Only the business miles go into the deduction.
In the US, if you want the option of the standard mileage method you generally have to use it in the first year the car is in service. Choosing actual expenses first can lock you out of standard mileage for that vehicle. If you're unsure, ask an accountant before you file the first year.
Milvo covers the recordkeeping the rules demand: drives are captured in the background, a swipe sorts business from personal, unsorted trips wait in a review queue, and one export produces a PDF and CSV log for any quarter or year — bought once, no subscription.
Frequently asked questions
Can I deduct mileage if I'm self-employed?
Yes. If you use your own vehicle for your business — as a 1099 contractor, gig driver, freelancer or sole proprietor — you can deduct the business miles, either at the standard rate or via actual expenses. Employees generally cannot under current US rules.
Standard mileage or actual expenses — which is better?
Standard mileage is simpler and often wins for high-mileage drivers because it only needs a log. Actual expenses can be larger if your real costs are high, but it requires keeping every receipt. Both need your business mileage.
What records do I need to claim the deduction?
A log showing the date, miles, purpose and destination of each business trip, kept close to the time you drove. If you use actual expenses, add receipts for your vehicle costs.
Does the deduction lower my self-employment tax too?
Yes — because it reduces your net business profit, the mileage deduction lowers both income tax and self-employment tax, which is part of why it's so valuable for gig and 1099 drivers.