Can I Write Off My Car? (2026)

Partly

You can deduct the business-use portion of your car, not the personal part. Choose one of two methods: the standard mileage rate (72.5 cents per business mile for 2026) or actual expenses (gas, insurance, repairs, depreciation) multiplied by your business-use percentage. Commuting from home to a regular workplace does not count; driving between jobs, to clients, or for deliveries does.

Where it goes: Schedule C, Line 9 (car and truck expenses)

Illustration for whether your car is tax deductible

The IRS lets you deduct vehicle costs one of two ways. The standard mileage method multiplies your business miles by a set rate (72.5 cents for 2026), which is simple and needs only a mileage log. The actual-expense method totals your real costs, gas, insurance, maintenance, depreciation, and applies your business-use percentage.

You cannot deduct personal driving, and commuting from home to a regular place of work is treated as personal. Business miles include trips to clients, between job sites, to pick up supplies, and, for gig drivers, time spent driving for hire.

If you use actual expenses, keep receipts. If you use the standard rate, keep a mileage log with the date, miles, and business purpose. Either way, you can also deduct business tolls and parking on top.

When it qualifies

Miles driven for business: to clients, between jobs, for supplies, or driving for hire
The business-use percentage of actual costs, if you use the actual-expense method
Tolls and parking incurred on business trips (on top of either method)

When it does not

Commuting from home to a regular workplace (treated as personal)
The personal-use share of the car
Parking tickets and traffic fines

How much can you deduct?

Either 72.5 cents per business mile (2026 standard rate) or your actual costs times your business-use percentage. Pick the method that gives the larger deduction for your situation.

A worked example

Example: you drive 6,000 business miles in 2026. At the standard rate of 72.5 cents that is a $4,350 deduction (6,000 x $0.725), before adding business tolls and parking. If actual expenses for your business-use share came out higher, you would compare and choose that method instead.

A deduction only counts if you can prove it. NeoReceipt captures the receipt and files it onto the right Schedule C line, so every write-off is documented at tax time.

Try NeoReceipt free 1099 tax calculator

Frequently asked questions

Can I write off my car if I am self-employed?+

You can deduct the business-use portion, using either the standard mileage rate (72.5 cents per mile for 2026) or actual expenses times your business-use percentage. Personal and commuting miles do not count.

Is it better to use mileage or actual expenses?+

It depends on your car and miles. High-mileage, lower-cost cars often do better on the standard rate; expensive vehicles with high running costs may do better on actual expenses. Track receipts and miles so you can compare.

Does my commute count as a business mile?+

No. Driving from home to a regular place of work is a personal commute. Business miles are trips between jobs, to clients, for supplies, or driving for hire.

Can I deduct tolls and parking?+

Yes. Business tolls and parking are deductible on top of either the mileage or actual-expense method. Parking tickets and fines are not.