Rental Property Mileage Deduction 2026: Rates, Rules, and How to Track
The 2026 IRS mileage rate is 72.5 cents per mile. Learn how to deduct mileage for rental property trips, what qualifies, and how to keep records the IRS accepts.
2026 IRS Mileage Rate for Rental Property
The IRS standard mileage rate for 2026 is 72.5 cents per mile ($0.725), up from 70 cents in 2025. Every mile you drive for rental property management, maintenance, or inspections is deductible on Schedule E.
This deduction adds up faster than most landlords realize. If you drive 2,000 rental-related miles per year, that is $1,450 in tax deductions — roughly $320–$535 in tax savings depending on your bracket.
What Mileage Qualifies?
Any driving with a primary purpose related to your rental property business is deductible. Qualifying trips include:
Always Deductible
- Driving to your rental property for inspections or maintenance
- Trips to meet contractors at the property
- Driving to the hardware store for rental property supplies
- Travel to meet prospective or current tenants
- Trips to your property manager's office
- Driving to your accountant or attorney for rental-related matters
- Trips to the bank to deposit rent checks
- Travel to real estate investor meetings or education events
Deductible for Multi-Property Landlords
- Driving between rental properties
- Travel to view potential acquisition properties (deductible as investment expense if you are actively managing a rental portfolio)
Not Deductible
- Your regular commute from home to a W-2 job (even if you stop at the property on the way)
- Personal errands combined with a property visit — only the rental-purpose portion qualifies
- Travel to a property you live in (personal residence)
Standard Mileage Rate vs. Actual Expenses
You have two options for deducting vehicle costs. Choose the one that gives you a larger deduction.
Option 1: Standard Mileage Rate ($0.725/mile in 2026)
Multiply your rental-related miles by $0.725. This rate covers gas, insurance, depreciation, maintenance, and wear-and-tear on your vehicle. You can deduct parking and tolls separately on top of the standard rate.
Best for: Most landlords, especially those with fuel-efficient or older vehicles.
Option 2: Actual Expenses
Track all vehicle costs (gas, insurance, maintenance, repairs, depreciation, registration, lease payments) and multiply by the percentage of miles driven for rental purposes.
Example: Total vehicle costs of $8,000, total miles driven 15,000, rental miles 2,000. Rental percentage: 13.3%. Deduction: $8,000 × 13.3% = $1,067.
Compare: Standard mileage would give you 2,000 × $0.725 = $1,450. In this case, the standard rate wins.
Best for: Landlords with expensive vehicles (high insurance, lease payments) or who drive a high percentage of rental miles.
Important: If you use the standard mileage rate in the first year you use a vehicle for rental purposes, you can switch to actual expenses in later years. But if you start with actual expenses, you cannot switch to the standard mileage rate for that vehicle.
How to Track Mileage (IRS Requirements)
The IRS requires contemporaneous records — meaning you must log trips at or near the time of travel. Reconstructing mileage from memory at year-end is not sufficient. Your log must include:
- Date of the trip
- Destination (property address, store name, etc.)
- Business purpose (inspection, repair, tenant meeting, supply run, etc.)
- Miles driven (odometer readings or GPS-tracked distance)
Tracking Methods
Mileage tracking apps (recommended):
- MileIQ — automatic trip detection, swipe to classify
- Everlance — combined mileage and expense tracking
- Stride — free option for basic tracking
- Google Maps Timeline — can supplement but is not a formal log
Manual spreadsheet: A simple spreadsheet with date, start/end odometer, destination, and purpose columns. Save it somewhere you will not lose it.
Paper log: The IRS still accepts a paper mileage log kept in your vehicle. Less convenient but legally sufficient.
Sample Mileage Log
| Date | From | To | Purpose | Miles |
|---|---|---|---|---|
| 1/15/2026 | Home | 123 Elm St (Rental) | Annual inspection | 14.2 |
| 1/15/2026 | 123 Elm St | Home Depot | Purchase smoke detectors | 6.8 |
| 1/15/2026 | Home Depot | Home | Return from supply run | 11.4 |
| 2/03/2026 | Home | 123 Elm St | Meet plumber for leak repair | 14.2 |
| 2/03/2026 | 123 Elm St | Home | Return from repair visit | 14.2 |
Total for these trips: 60.8 miles × $0.725 = $44.08 deduction
Mileage Deduction by Landlord Type
Single-Property Landlord (Nearby)
Typical annual rental miles: 300–800 Estimated deduction: $218–$580
Multi-Property Landlord (Local)
Typical annual rental miles: 1,500–4,000 Estimated deduction: $1,088–$2,900
Self-Managing Long-Distance Landlord
Typical annual rental miles: 3,000–8,000+ Estimated deduction: $2,175–$5,800+
For long-distance landlords, you can also deduct airfare, hotel, and meals (50% for meals) if you travel to your rental property for business purposes. These are separate from the mileage deduction.
Where to Report Mileage on Your Tax Return
Report rental property mileage on Schedule E, Line 6 (Auto and travel). Enter the total deduction amount — you do not need to list individual trips on the return itself. However, keep your mileage log in your records in case of audit.
If you use actual vehicle expenses, also file Form 4562 for vehicle depreciation.
Historical IRS Mileage Rates
| Year | Rate per Mile |
|---|---|
| 2026 | $0.725 |
| 2025 | $0.70 |
| 2024 | $0.67 |
| 2023 | $0.655 |
| 2022 (Jul–Dec) | $0.625 |
| 2022 (Jan–Jun) | $0.585 |
If you are filing a 2025 return (due April 15, 2026), use the $0.70 per mile rate for 2025 miles driven. The $0.725 rate applies to miles driven in 2026.
Common Mileage Deduction Mistakes
- Not tracking at all — the most common mistake. Without a log, you get $0 in mileage deductions even if you drove thousands of rental miles. Start tracking today.
- Counting commute miles — driving from home to your W-2 job is never deductible, even if you stop at the rental property
- Double-counting — you cannot claim both the standard mileage rate and actual gas/maintenance expenses. Choose one method.
- Forgetting parking and tolls — these are deductible on top of the standard mileage rate. Track them separately.
- Not separating personal and rental trips — if you combine a personal errand with a rental trip, only the rental portion qualifies
For more landlord tax mistakes, see our guide to 12 common landlord tax mistakes.
Calculate Your Full Rental Tax Savings
Mileage is just one of dozens of deductions available to rental property owners. Use our rental property tax calculator to see your total deduction — including depreciation, mortgage interest, and all operating expenses.
Rates and rules are for the 2025 tax year (filed in 2026) and the 2026 tax year. Consult a qualified tax professional for advice specific to your situation.