Tax rule US
The standard mileage rate: 76 cents per mile
A car's business use can be deducted at the standard mileage rate in place of its actual expenses. What the IRS says, and how Bilbx's Tax Lab claims it.
Business use
76 cents per mile
Checked against the IRS's own pages on . This is the figure Bilbx uses.
What is the standard mileage rate for business driving?
For 2025, the rate for business use is 70 cents a mile.
What the IRS says
“Mileage rates for all years (cents/mile)”
“2025 70 14 21 IR-2024-312”
From January 1, 2026, it is 72.5 cents per mile, and from July 1, 2026, 76 cents.
What the IRS says
“2026 (Jan. 1 - June 30) 72.5”
“2026 (July 1 - Dec. 31) 76”
“Self-employed and business: 76 cents/mile”
A year claimed at the standard mileage rate cannot also deduct the car's actual expenses, such as depreciation, lease payments, maintenance and repairs, gasoline, oil, insurance or vehicle registration fees.
What the IRS says
“If you use the standard mileage rate for a year, you can't deduct your actual car expenses for that year.”
“You can't deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees.”
To use the standard mileage rate for a car you own, you must choose it in the first year the car is available for use in your business.
What the IRS says
“you must choose to use it in the first year the car is available for use in your business”
Business parking fees and tolls are deducted in addition to the standard mileage rate, and public transport fares separately.
What the IRS says
“In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls.”
How does Bilbx apply this rule?
- Tax Lab deducts the business miles you give for a year at the rate for each part of it, 76 cents per mile today.
- Your Vehicle & Transport receipts then come out of the expenses claimed, listed as covered by the rate. Any you mark as parking or tolls stay claimed.
What does this look like in practice?
Bilbx's own tests run these exact cases against the website and the app.
| Tax year starting | Business miles | Tax Lab claims |
|---|---|---|
| 1 January 2026 | 6,000 miles at 72.5 cents per mile (1 January 2026 to 30 June 2026)4,000 miles at 76 cents per mile (1 July 2026 to 31 December 2026) | $7,390 |
| 1 January 2025 | 10,000 miles at 70 cents per mile | $7,000 |