Taxes
Actual expense method vs standard mileage: which saves more?
When the actual expense method beats the standard mileage rate — and when it doesn't. A practical comparison for 1099 contractors.
By MileTracker · April 7, 2026 · 8 min read
The IRS gives you two ways to deduct vehicle expenses: the standard mileage rate or actual expenses. Most 1099 contractors are better off with the standard rate, but not always.
Standard mileage rate
$0.67 per business mile in 2026. Simple. Requires only a mileage log.
Actual expenses
Track every car expense — gas, insurance, repairs, depreciation, lease payments, registration. Multiply the total by the percentage of business use.
When actual expenses win
- Expensive vehicles (SUVs, trucks)
- High-cost-of-ownership vehicles (luxury, EVs with expensive battery replacements)
- Low-mileage / high-cost scenarios
When standard mileage wins
- Most cars driven for ride-share, delivery, or sales
- High-mileage drivers in efficient vehicles
- Anyone who hates paperwork
MileTracker detects every drive in the background, lets you classify business or personal in one tap, and exports an IRS-ready PDF and CSV at tax time. Download MileTracker free on the App Store.