As we jump into tax season each year, Ken and I notice the same pattern.

It’s not that business owners don’t track things — it’s that they track what feels urgent. Invoices. Deposits. Expenses. Mileage usually comes later… if at all.

By the time we’re reviewing returns for clients, mileage is often the line item that triggers,
“Oh… I meant to keep better records for that.”

This year, that detail matters even more.

The IRS has set the 2026 standard mileage rate at 72.5 cents per mile for business use of a personal vehicle. That increase may seem small, but when you drive regularly for work, it can make a meaningful difference on your tax return.

Let’s walk through what this rate means, how it’s determined, and how to handle mileage — even if your records for 2025 aren’t perfect.

What Is the 2026 Standard Mileage Rate?

The standard mileage rate is an optional IRS method for deducting vehicle costs when you use your personal vehicle for business.

For 2026, the IRS allows:

• 72.5¢ per mile for business miles driven

Instead of tracking gas, insurance, repairs, and depreciation separately, you multiply your business miles by 72.5 cents to calculate the deduction.

For many Maryland small business owners, this is the simplest and most practical approach.

What Counts as Business Mileage?

Business mileage generally includes:

• Driving to meet clients

• Travel to job sites or temporary work locations

• Business errands such as bank runs or supply pickups

What does not count:

• Commuting from home to a regular office or job location

This distinction is especially important for service-based businesses throughout Maryland, where driving is often part of day-to-day work.

How the IRS Determines the Mileage Rate

Each year, the IRS studies nationwide vehicle operating costs, including:

• Fuel

• Maintenance and repairs

• Insurance

• Vehicle depreciation

Even when gas prices don’t spike, other costs — especially insurance and ownership expenses — continue to rise. The 2026 increase reflects those real-world costs.

Why This Deduction Can Be So Valuable

Mileage adds up faster than most people expect.

For example:

• 5,000 business miles × $0.725 = $3,625 in deductions

That directly reduces taxable income.

For Maryland business owners who drive regularly — contractors, consultants, real estate professionals, and service providers — mileage is often one of the largest overlooked deductions.

Simple Mileage Tracking Tips (That Actually Work)

Mileage tracking doesn’t need to be perfect. It needs to be consistent.

What we recommend to clients:

• Track mileage as you go, not months later

• Log the date, miles, and business purpose

• Use a mileage app, spreadsheet, or paper log — whichever you’ll actually maintain

• Record beginning and ending odometer readings for the year

The IRS doesn’t require fancy tools. They require records you can reasonably explain.

What If You Didn’t Keep Great Mileage Records in 2025?

You’re not alone.

Most people don’t skip mileage tracking intentionally — it just slips behind more urgent tasks. If your 2025 records are incomplete, that doesn’t automatically mean the deduction is off the table.

It does mean the next steps matter.

How to Recreate Mileage Logs (When Needed)

The IRS allows reconstructed mileage records, as long as they’re reasonable and based on real information — not guesses.

Helpful sources include:

• Calendar entries or appointment schedules

• Emails confirming client meetings or job locations

• Invoices or service logs

• Mapping tools to calculate distances between known locations

• Credit card or fuel receipts that support driving activity

The goal isn’t perfection.
It’s creating a credible, supportable log that reflects what actually happened.

What a Recreated Log Should Still Show

Even when rebuilding records, try to include:

• Approximate dates

• Starting and ending locations

• Business purpose

• Miles driven, calculated consistently

Consistency matters more than exact mileage.

What to Avoid

It’s important to be cautious here.

Avoid:

• Estimating a flat mileage number “because it feels right”

• Claiming mileage with no supporting details

• Creating logs you couldn’t confidently explain

Sometimes, adjusting expectations is better than forcing a deduction that can’t be supported.

Mileage vs. Actual Vehicle Expenses

The standard mileage rate is optional.

In some cases, deducting actual vehicle expenses may be more beneficial, depending on the vehicle and usage. That’s something we review as part of tax planning — the goal is clarity and confidence, not guessing.

The Bottom Line

Mileage is one of those “small” details that often carries a bigger tax impact than expected.

With the 2026 rate at 72.5 cents per mile, it’s worth paying attention now — and if 2025 was messy, use that as a reset, not a failure.

Your numbers aren’t asking for perfection.
They’re just asking to be noticed.

If you’d like help reviewing mileage or deciding the cleanest path forward, that’s a conversation we’re always happy to have as part of Federal and Maryland tax planning.

FAQ: Standard Mileage Rate & Recordkeeping

Can I still deduct mileage if my records aren’t perfect?
Possibly. The IRS allows reconstructed mileage logs if they’re reasonable and based on real supporting information.

What can I use to recreate mileage records?
Calendars, emails, invoices, job schedules, mapping tools, and fuel receipts can all help support reconstructed logs.

Do I need exact mileage for every trip?
No. The IRS looks for consistency and credibility, not perfection.

What if I can’t reasonably recreate my mileage?
In some cases, it may be better to limit or skip the deduction rather than claim unsupported mileage. This is something to review before filing.

How can I avoid this issue going forward?
Choose one simple tracking method you’ll actually use and log mileage weekly or immediately. Small habits now prevent stress later.

Conclusion

Mileage is one of those details that rarely feels urgent in the moment — until you see how much it can affect your tax return.

Whether your records for 2025 are complete or a little scattered, the goal isn’t perfection. It’s understanding what your numbers are actually telling you and choosing a clear, confident path forward.

With the 2026 standard mileage rate set at 72.5 cents per mile, this is a good time to reset habits, tighten tracking, and ask questions before filing — not after.

If mileage has been a gray area for you in the past, that’s often a sign it’s worth a closer look.