Landlord Mileage Deduction 2026: What Counts and How to Track It

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Educational only, not tax advice. Rental Money Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. The examples below are hypothetical, and your numbers will be different.

Last updated: November 12, 2026. Mileage rates and line 6 placement were checked against IRS.gov on that date.

If you drive to show a unit, meet a contractor, or drop off a repair part, those miles can add up. The standard mileage rate is the simple way many small landlords turn a trip log into a deduction on Schedule E. For 2026, there are two rates in one year, and not every drive to the property counts.

Quick answer: You may deduct ordinary and necessary local transportation costs incurred to collect rental income or to manage, conserve, or maintain your rental property. Driving between your home and a rental property is generally treated as nondeductible commuting unless your home is your principal place of business (IRS Pub. 527 (2025), “Local transportation expenses”). For 2026, the standard mileage rate is 72.5 cents per business mile from January 1 to June 30 and 76 cents from July 1 to December 31 (IRS: Standard mileage rates). Parking fees and tolls for those rental trips can be added on top. The deduction goes on Schedule E, line 6, and you generally need to attach Form 4562, Part V (2025 Instructions for Schedule E; confirmed in the 2026 Schedule E instructions, draft).

Who this guide is for

This guide is for individual landlords and short-term rental hosts who report rental real estate on Schedule E (Form 1040) and sometimes drive a car, van, pickup, or panel truck for the rental.

If you provide substantial services to guests, such as regular cleaning, changing linen, or maid service, you may report the activity on Schedule C instead of Schedule E (Pub. 527, “Schedule C”). The mileage rates below are still the IRS business rates. Ask a tax pro which form you should use.

Which rental trips count (and which don’t)

Pub. 527 says you may be able to deduct ordinary and necessary local transportation expenses incurred to collect rental income or to manage, conserve, or maintain your rental property (Pub. 527, “Local transportation expenses”). Examples that usually fit that description include:

  • Driving to the rental to show it, do or oversee a repair, inspect the unit, or meet a contractor or tenant
  • A trip to pick up rental supplies, keys, or a part needed to keep the property in operating condition
  • A trip to the bank or a similar stop when the purpose is to deposit or collect rent
  • Driving from one rental property to another in the same rental activity

The same publication draws a clear line for the drive from home: transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business (Pub. 527, “Local transportation expenses”; see also Pub. 587 (2025) on whether a home office qualifies).

That commuting rule surprises a lot of owners with a single rental a few miles from home. A conservative reading is to leave the home-to-property and property-back-home legs out of the deduction unless a tax pro has confirmed that your home is your principal place of business for the rental. Miles between the property and another business stop, or between two properties, are on firmer ground.

If you travel away from home, you can deduct ordinary and necessary travel expenses only if the primary purpose of the trip is to collect rental income or to manage, conserve, or maintain the property. A trip whose primary purpose is to improve the property is not deductible travel; improvement costs are recovered through depreciation (Pub. 527, “Travel expenses”).

2026 standard mileage rates: two rates in one year

The IRS set the 2026 business standard mileage rate at 72.5 cents (IR-2025-128; Notice 2026-10), then raised it from July 1, 2026, citing increases in the price of fuel (Announcement 2026-11, IRB 2026-29). Rates confirmed November 12, 2026 on the IRS standard mileage rates page:

Business miles driven Rate Source
January 1 – June 30, 2026 72.5 cents per mile IR-2025-128 / Notice 2026-10
July 1 – December 31, 2026 76 cents per mile IR-2026-29 / Announcement 2026-11

The 2026 draft Instructions for Schedule E tell you to multiply rental-activity miles by 72.5 cents from January 1 through June 30 and by 76 cents from July 1 through December 31, then include that amount plus parking fees and tolls on line 6 (2026 Schedule E instructions, draft). That draft is labeled “not for filing.” Check the final 2026 instructions when the IRS posts them at IRS.gov/ScheduleE.

Pub. 527 (2025), the latest edition as of this writing, still lists the 2025 rate of 70 cents a mile. Use the IRS standard mileage rates page, not that older figure, for 2026 trips.

Standard mileage rate vs. actual expenses

In most cases you can use either the standard mileage rate or actual expenses. You must use actual expenses if you used more than four vehicles at the same time (fleet operations). You can use the 2026 standard rate for an owned vehicle only if you used it in the first year the vehicle was placed in service, and for a leased vehicle only if you use it for the entire lease period. You can’t switch a leased vehicle to actual expenses if you previously used the standard rate for that vehicle (2025 Instructions for Schedule E, Line 6; the same conditions appear in the 2026 draft instructions).

The standard rate replaces gas, oil, repairs, insurance, registration, depreciation, and lease payments, so you can’t deduct those too (Pub. 463 (2025), chapter 4, “Standard Mileage Rate”). Under actual expenses, you deduct the rental-activity share of those costs. That share of gas, oil, repairs, insurance, tires, and license plates goes on line 6; auto lease payments go on line 19, and vehicle depreciation goes on line 18 (2025 Instructions for Schedule E, Line 6).

Either method needs a mileage log. If you claim any auto expenses, including the standard mileage rate, you must complete Part V of Form 4562 and attach it to your return (Pub. 527, “Local transportation expenses”).

The 2026 draft Schedule E instructions also say you can deduct the business-use share of personal property tax on the vehicle on line 16, and they add a new line 13a for the business-use share of vehicle loan interest under either method (2026 Schedule E instructions, draft, Lines 6 and 13a). Because line 13a is only in a draft form, confirm the final 2026 Schedule E before you file. Don’t deduct the same loan interest on both Schedule E and Schedule 1-A.

Parking, tolls, and other add-ons

Even with the standard rate, you can include business-related parking fees and tolls with your mileage on line 6 (2026 Schedule E instructions, draft, Line 6; Pub. 463, “Parking fees and tolls”). A toll between two rental stops fits; a toll on a commute between home and the rental generally does not. Fines and parking tickets aren’t deductible (Pub. 463, “Fines and collateral”). Qualifying meals while traveling away from home are limited to 50% and also go on line 6 (2025 Instructions for Schedule E, Line 6).

What records the IRS wants

Pub. 463 Table 5-1 asks for the vehicle’s cost, the date business use began, miles for each business use, total yearly miles, and the date, destination, and business purpose of each use (Pub. 463, Table 5-1). For a rental trip, log:

  • Date
  • Property or destination (for example, the rental address or “hardware store to rental”)
  • Purpose (“meet plumber for leak,” “show unit to applicant”)
  • Miles for that trip, plus a note if you are leaving out a commute leg

Note your odometer on January 1 and December 31 so you have total yearly miles. Records made at or near the time carry more weight than ones rebuilt later; a weekly log covering the week counts as timely (Pub. 463, chapter 5, “Timely kept records”). Generally keep records for 3 years from the date you file (Pub. 463, “How Long To Keep Records and Receipts”). Because 2026 has two rates, split first-half and second-half miles in the log instead of waiting until year-end to sort them.

Hypothetical example: a small landlord in 2026

Hypothetical example (made-up numbers): a landlord keeps a timely log of rental-related miles and leaves the home-to-property commute out. The log shows 800 business miles from January 1 to June 30 and 1,000 from July 1 to December 31. They also paid $24 in parking and tolls on those rental trips.

Item Math Amount
Jan. 1 – June 30 business miles 800 × $0.725 $580.00
July 1 – Dec. 31 business miles 1,000 × $0.76 $760.00
Business parking and tolls Added on top $24.00
Schedule E, line 6 $1,364.00

The correct mileage amount is $1,340 before parking and tolls. Using 76 cents for all 1,800 miles would give $1,368, an overstatement of $28. Using 72.5 cents for everything would give $1,305, which leaves $35 unclaimed. These figures are only an illustration. Your trips, rates by date, and line 6 total will be different.

Common mistakes

  • Counting the drive from home to the rental. Pub. 527 generally treats that as commuting unless your home is your principal place of business.
  • Using one rate for all of 2026. Split your miles at June 30.
  • Claiming gas or repairs on top of the standard rate. The rate already covers those costs.
  • Skipping Form 4562. Auto expenses, including the standard rate, generally require Part V of Form 4562.
  • Rebuilding the log from memory in April. A timely log is the record the IRS describes.

If you already track rent, repairs, and contractor payments in one place, it’s easier to keep the mileage log next to them. Our Rental Income & Expense Tracker (Essentials) is coming soon. It has a mileage tab that applies the 72.5-cent and 76-cent 2026 rates by trip date and rolls the total toward Schedule E line 6. It’s a tool for organizing records, not tax advice, and it isn’t for sale yet.

FAQ

Can I deduct the drive from my house to my rental property?

Usually not. Pub. 527 says transportation between your home and a rental property generally constitutes nondeductible commuting unless you use your home as your principal place of business (Pub. 527, “Local transportation expenses”).

Do short-term rental hosts use the same 2026 mileage rates?

Yes, the IRS business standard mileage rates above apply to business use of a car, including rental activity. Whether you report on Schedule E or Schedule C depends on the services you provide, not on the mileage rate (Pub. 527, “Schedule C”).

I didn’t track miles earlier this year. What now?

Start a timely log today, and split new trips at the June 30 rate change. For earlier months, reconstruct what you can from calendars, invoices, and bank records, and ask a tax pro how much to rely on reconstructed records (Pub. 463, chapter 5, “What if I Have Incomplete Records?”).

Where does the deduction go on my tax return?

On Schedule E, line 6 (Auto and travel), along with qualifying parking, tolls, and travel. Attach Form 4562, Part V (Instructions for Schedule E, Line 6).

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