1099 Mileage Deduction Guide 2026: The 72.5¢/Mile Rule Explained
If you drive for DoorDash, Uber, Instacart, Amazon Flex, or any 1099 work, mileage is almost certainly your largest tax deduction — and the most commonly under-claimed. For 2026, every business mile is worth 72.5 cents off your taxable income (IRS Notice 2026-10).
2026 IRS standard mileage rates
| Purpose | 2026 rate | 2025 rate |
|---|---|---|
| Business | 72.5¢/mile | 70¢/mile |
| Medical / military moving | 20.5¢/mile | 21¢/mile |
| Charitable | 14¢/mile | 14¢/mile |
What counts as business miles?
✅ Deductible
- Driving to pickups and drop-offs (deliveries, rides)
- Miles between gigs while the app is on and you're available for work
- Driving to buy supplies, to the bank for business, or to meet clients
- Trips between two different work locations
❌ Not deductible
- Commuting from home to a first regular workplace
- Personal errands mixed into your day (log them separately)
- Miles driven with the app off
Standard mileage rate vs actual expenses
You have two options, chosen per vehicle:
| Standard mileage (72.5¢/mi) | Actual expenses | |
|---|---|---|
| What it covers | Gas, maintenance, insurance, depreciation, registration — bundled | Actual costs × business-use % |
| Record-keeping | Mileage log only | Every receipt + mileage log anyway (for the %) |
| Usually best for | High-mileage, average-cost vehicles (most gig drivers) | Expensive/leased vehicles with lower miles |
Important: if you want the standard rate for a vehicle, you generally must use it in the first year that vehicle is used for business. Run both numbers in year one.
The record-keeping rule that trips people up
The IRS requires a contemporaneous log — recorded at or near the time of the trip, not reconstructed in April. Each entry needs: date, business purpose, start/end locations, and miles. In an audit, a reconstructed-from-memory log is the first thing disallowed.
The practical answer is automatic GPS tracking. Perkstacker's built-in mileage tracker logs your route via GPS, applies the current 72.5¢ IRS rate, classifies trips as business or personal with one tap, and exports a clean log for your tax preparer.
Don't forget the deductions that stack on top
- Tolls and parking — deductible in addition to the standard mileage rate
- Phone/data plan — the business-use percentage
- Hot bags, phone mounts, supplies — 100% if work-only
- Quarterly estimated taxes — mileage reduces the income those are based on; update your estimates as your log grows
And remember: deducting fuel via the mileage rate doesn't stop you from earning on it — see our best gas credit cards and cashback stacking guide. Rewards and cashback are generally treated as purchase rebates, not income.
Track miles automatically at 72.5¢ each
Perkstacker's GPS mileage tracker + receipt OCR + Schedule C dashboard keeps your 1099 deductions audit-ready all year.
Get Perkstacker free →FAQ
What is the IRS mileage rate for 2026?
72.5 cents per mile for business use, per IRS Notice 2026-10 — up 2.5¢ from 2025.
Do miles between deliveries count?
Generally yes, while you're active on the platform and available for work. The commute from home to a first regular workplace does not.
Standard rate or actual expenses?
Most high-mileage gig drivers do better with the standard rate and its dramatically simpler records. Run both in your first year.
What if I didn't track miles all year?
Start today. Platform trip histories, odometer photos, and calendar records can help support a partial-year claim — talk to a tax professional about reconstruction limits.
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