Why Tracking Mileage Still Pays Off in 2026
Why Tracking Mileage Still Pays Off in 2026
Every business mile you don’t log is a deduction you’re leaving on the table. The IRS lets you deduct vehicle costs one of two ways — actual expenses or the standard mileage rate — but either way, the burden of proof for tracking mileage is on you. No mileage log, no deduction, full stop if you’re ever audited.
Example: 400 business miles a month
Say you’re a contractor or real estate investor driving to job sites, property showings, or client meetings — 400 miles a month, tracked consistently.
- Monthly deduction: 400 × $0.76 = $304
- Annual deduction: 4,800 miles × $0.76 = $3,648
That’s real money — and it costs nothing but a habit. A simple mileage app or even a notebook in the glovebox is the difference between banking that $3,648 and losing it.
What about medical travel from a rural town to the city?
Yes — mileage driven primarily for medical care counts, including trips from a rural area into the city for treatment, so long as the travel is essential to getting that care (not incidental). At 200 miles a month:
- Monthly deduction: 200 × $0.235 = $47
- Annual deduction: 2,400 miles × $0.235 = $564
One important catch: medical mileage isn’t a standalone deduction. It’s added to your other unreimbursed medical expenses, and only the amount that exceeds 7.5% of your adjusted gross income is deductible — and only if you itemize. Business mileage has no such floor.