Read summarized version with:
ChatGPT
Gemini
Claude
Grok
Add as preferred on Google
Updated for the 2026 tax year
Landlords can deduct car and travel costs when the trip is for the rental business. That includes collecting rent, showing a unit, meeting a contractor, or picking up repair supplies.
For 2026 the IRS standard mileage rate is 72.5¢ a mile for January to June and 76¢ a mile for July to December. Driving from your home to a rental is usually commuting, though, and that's not deductible.
What travel can landlords deduct?
The IRS lets you deduct travel that's ordinary and necessary for your rental business. That means it's common for landlords and actually helps you run the property.
| Usually deductible | Usually not deductible |
|---|---|
| Rental to rental, or rental to the hardware store | Home to your rental, unless your home is your principal place of business |
| Trips to meet tenants, contractors, your accountant or attorney | A detour to the grocery store on the way back |
| Showing the unit to prospective tenants | Your daily commute to your day job |
| Trips to collect rent or handle repairs and maintenance | Trips for an improvement or renovation (see below) |
| Landlord education events and trade shows | Social catch-ups with other landlords |
Is driving from home to a rental deductible?
Usually not. IRS Publication 527 says travel "between your home and a rental property generally constitute[s] nondeductible commuting costs unless you use your home as your principal place of business."
- If you manage your rentals from a home office that qualifies as your principal place of business, trips from home can count. Publication 587 explains when a home office qualifies.
- Trips from one work location to another are generally deductible (Pub 463). For example, rental to rental, or rental to a supplier.
Repairs vs improvements
- Repairs and maintenance: travel is deductible in the year you incur it.
- Improvements: improvement costs are capitalized and recovered through depreciation, not deducted straight away. Pub 527 applies this directly to overnight trips: you can't deduct travel away from home if the main purpose is to improve the property. Talk to your accountant about how to treat local trips tied to a renovation.
What is the IRS mileage rate for 2026 and past years?
The IRS sets the business rate each year, and occasionally changes it mid-year. 2026 is one of those years.
| Tax year | Business rate per mile |
|---|---|
| 2026 (Jul 1 – Dec 31) | 76¢ |
| 2026 (Jan 1 – Jun 30) | 72.5¢ |
| 2025 | 70¢ |
| 2024 | 67¢ |
| 2023 | 65.5¢ |
| 2022 (Jul 1 – Dec 31) | 62.5¢ |
| 2022 (Jan 1 – Jun 30) | 58.5¢ |
| 2021 | 56¢ |
| 2020 | 57.5¢ |
| 2019 | 58¢ |
Source: IRS standard mileage rates, checked 19 Oct 2026.
The rates apply to gas, diesel, hybrid and electric vehicles alike.
How do you calculate the mileage deduction?
Multiply your business miles by the rate for the period you drove them.
Example for 2026: you drive 1,000 rental miles between January and June and another 1,000 between July and December.
- 1,000 × $0.725 = $725
- 1,000 × $0.76 = $760
- Total mileage deduction: $1,485
Every trip in your log needs a date anyway. In 2026 the date also decides which rate applies.
Want to run your own numbers? Try our free mileage calculator.
What can you claim on top of the standard rate?
| You can add on top | Already covered by the rate (don't add) |
|---|---|
| Business parking fees | Gas and oil |
| Tolls | Insurance |
| Business share of car loan interest | Repairs and maintenance |
| Business share of state or local personal property tax on the car | Depreciation or lease payments |
| Registration fees |
Source: Pub 463, chapter 4.
Should you use the standard rate or actual expenses?
| Standard mileage rate | Actual expenses | |
|---|---|---|
| What you deduct | Business miles × IRS rate | Business share of gas, oil, repairs, tires, insurance, registration, depreciation |
| Mileage log needed? | Yes | Yes, to work out the business-use percentage |
| Receipts needed? | Parking, tolls, interest | Every car expense |
| Best for | Most landlords. Less admin | High-cost vehicles or heavy rental driving |
Rules to know:
- Choose the standard rate in year one. To use the standard rate on a car you own, you must use it in the first year the car is available for your rental business.
- Switching methods. After the first year you can switch to actual expenses. Depreciation must then be straight-line. A leased car on the standard rate must stay on it for the whole lease.
- A log is required either way. With actual expenses you split costs by miles driven. If 3,000 of your 12,000 annual miles were for rentals, you deduct 25% of the car costs. This is where a mileage tracker earns its keep: an app like Landlord Studio logs each trip as you drive, so your business-use percentage is backed by a record instead of an estimate.
Can you deduct overnight trips to out-of-state rentals?
Yes, if the trip's primary purpose is collecting rent or managing, maintaining or conserving the property. This matters most if you own out-of-state property.
| Cost | Deductible? |
|---|---|
| Flights, trains, rental car to get there and back | Yes, if the trip is primarily business |
| Lodging | Yes, for business days |
| Meals | 50%, for business days |
| Lodging and meals on vacation days you add on | No |
| A vacation with a quick property check | Only costs directly tied to the rental work |
What should a mileage log include?
Pub 463 asks for an "adequate record". For car expenses that means:
- the miles for each business trip
- your total miles for the year
- the date of each trip
- where you went
- the business purpose
Tip: note your odometer reading on January 1 and December 31. It makes the total-miles figure easy to prove.
Keep the log as you go. Rough estimates reconstructed at tax time won't hold up.
Where does it go on your tax return?
- Schedule E, line 6 (Auto and travel): your rental car and travel costs.
- Form 4562, Part V: Pub 527 says that to deduct car expenses under either method, "you must complete Form 4562, Part V, and attach it to your tax return."
If you overstate deductions through negligence, you may face a 20% accuracy-related penalty plus interest. Good records are your best protection.
How do you track rental mileage without a spreadsheet?
Landlord Studio has a built-in GPS mileage tracker:
- Logs every trip. Start a trip when you get in the car, tag it to a property, and the app records the date, distance and route.
- Ready for tax time. Run a mileage report for the year and share it with your accountant.
- Keeps other costs in one place. Flights, hotels, parking and tolls go into rental expense tracking alongside everything else.
Comparing options? See our roundup of property accounting software or the best mileage tracker apps for landlords.
FAQ
Is driving to my rental property tax deductible?
Trips between work locations are, such as from one rental to another or from a rental to a supplier. Trips from your home to a rental are generally commuting unless your home is your principal place of business (Pub 527).
What is the IRS mileage rate for 2026?
72.5¢ a mile from January 1 to June 30, and 76¢ a mile from July 1 to December 31.
Do I need a mileage log if I claim actual expenses?
Yes. You need business and total miles to work out what share of your car costs is deductible.
Can I switch from actual expenses to the standard mileage rate?
Only if you used the standard rate in the first year the car was used for your rental business.
This article is general information, not tax advice. Rates and rules were checked against IRS sources on 19 Oct 2026. Talk to a tax professional about your situation.