Handyman Mileage Deduction: Standard Rate vs Actual Costs

A handyman can deduct the business use of a personal vehicle in one of two ways. Either multiply business miles by the IRS standard mileage rate, or deduct the actual costs of running the vehicle times your business-use percentage. Both require a written mileage record. Confirm the current year's standard rate at irs.gov, because it changes.

Driving is one of the biggest deductions a handyman has, and one of the most commonly under-claimed. A tradesperson who drives to estimates, supply houses and job sites can log thousands of business miles a year. Without a log, none of it is defensible.

This article is general information, not tax advice. Rules differ by situation, so confirm details with a CPA or in IRS Publication 463 at irs.gov.

The two methods in plain terms

Method 1: Standard mileage rate

The IRS publishes a per-mile rate each year. You track business miles, multiply by the rate and deduct the result. The rate is meant to cover gas, wear, depreciation, insurance and registration, so you do not deduct those separately.

You can still deduct, on top of the standard rate, parking fees and tolls for business trips. Ask your CPA whether anything else, such as loan interest, applies to your situation.

The formula: business miles x current IRS rate = deduction.

Example with a placeholder rate. Suppose the rate were $0.60 per mile (this is a made-up number for the math only, so look up the real one). If you drive 12,000 business miles: 12,000 x $0.60 = $7,200. Your deduction is $7,200 plus any business parking and tolls.

Method 2: Actual expenses

You add up what the vehicle really cost to operate for the year, then deduct the business-use share.

Typical costs include:

• Fuel and oil
• Repairs and maintenance
• Tires
• Insurance
• Registration and license fees
• Depreciation (or lease payments)
• Loan interest
• Parking and tolls

The formula: total vehicle costs x (business miles / total miles) = deduction.

Worked example. Total costs for the year: fuel $3,200, repairs and tires $1,400, insurance $1,600, registration $250, depreciation $3,000. That is $9,450. You drove 20,000 miles total, of which 14,000 were business. Business use is 14,000 / 20,000 = 70%. Deduction: $9,450 x 0.70 = $6,615.

You still need to track total miles and business miles. Actual expenses also require keeping every receipt for the vehicle.

Which method should you choose?

	Standard mileage	Actual expenses
Record keeping	Mileage log only	Mileage log plus every vehicle receipt
Best for	Lower-cost, fuel-efficient vehicles; people who want simplicity	Expensive-to-run trucks and vans with high repair, fuel or depreciation costs
Depreciation	Built into the rate	Calculated separately
Switching later	Often easier (see note)	Can limit your options

A rule that trips people up: in general, to use the standard rate on a vehicle you own, you must choose it in the first year you use the car for business. After that, you can often switch between methods from year to year, but if you start with actual expenses and certain accelerated depreciation, you may be locked out of the standard rate for that vehicle. The details depend on the vehicle and the depreciation you claimed. Ask a CPA before your first year of business use.

How to compare the two

Calculate both for your own numbers:

1. Standard method: business miles x the current rate.
2. Actual method: total costs x business-use percentage.
3. Compare results, then weigh the extra paperwork of the actual method.

A handyman with a heavy older truck with high fuel costs may come out ahead with actual expenses. Someone driving a small efficient car many miles may do better with the standard rate. The only way to know is to run both. Our handyman truck costs article breaks down what a work truck costs to run, which feeds directly into the actual-expense calculation.

Which trips count as business miles

This is where most mistakes happen. The general principle is that driving between your regular place of work and your home is commuting, and commuting is not deductible. Driving that is part of doing the job generally is.

Trips that typically count

• Home to a customer's job site, when your home is your principal place of business (see the home office note below).
• Job site to job site on the same day.
• Driving to a customer's home for an estimate.
• Trips to a supply house or hardware store to buy materials for a job.
• Driving to the dump or recycling center with job debris.
• Trips to the bank to make business deposits.
• Trips to meet suppliers, pick up permits or visit the building department.
• Driving to buy tools used in the business.

Trips that typically do not count

• Personal errands, even if you detour from a business trip. Only the business portion counts.
• Ordinary commuting to a regular office or shop that is not at home.
• Family trips and personal shopping.

The home office question

If you qualify to treat your home as your principal place of business, the IRS has treated trips from home to other work locations, such as customer sites, as business travel rather than commuting. If you do not have a qualifying home base, a trip from home to your first job of the day may be treated differently, particularly when you have a regular work location elsewhere. Whether you qualify depends on how you use space at home for administration and management. Confirm this with a CPA, because it changes which of your daily miles count.

What your mileage log must include

The IRS expects records for vehicle deductions that are timely and specific. For each business trip, record:

• Date
• Starting point and destination (address or customer/job name)
• Business purpose (for example, "estimate for fence repair" or "pick up lumber for Jones deck")
• Miles driven (odometer readings or trip distance)

Also record:

• Odometer reading at the start and end of the year, so you can prove total miles.
• Total miles for the year, including personal miles.

A log written at the time of the trip is stronger than one reconstructed from memory months later. If you are ever audited, a "reconstructed" log carries less weight than one kept as you went. The IRS lets you use other documentation to back up a record, such as your calendar, invoices and job notes, but nothing replaces a real log.

A simple template

Date	From	To	Purpose	Miles
Mar 4	Home	118 Oak St	Estimate, bathroom fan	7.2
Mar 4	118 Oak St	Lumber yard	Materials, Oak St job	4.5
Mar 4	Lumber yard	42 Pine Rd	Install shelving	6.1
Mar 4	42 Pine Rd	Home	Return	8.0

Even this level of detail is enough, as long as you keep it consistent.

How to track miles without losing your mind

You have three practical options.

Option 1: A paper log in the truck

A small notebook and pen in the door pocket costs almost nothing. Record the odometer at the start and end of each day plus each job stop. The risk is forgetting, so tie the habit to turning the key.

Option 2: A spreadsheet updated daily

Fill in the table above at the end of every day from your job schedule. This works if your calendar is accurate. Your invoices and job addresses become the backup.

Option 3: An app with GPS tracking

Automatic tracking apps record drives in the background and let you classify each as business or personal. HandyBook includes mileage tracking among its features, and the Business plan adds automatic GPS mileage tracking. You can check what each plan includes on the pricing page. Whichever app you use, confirm that it stores the date, start and end points, purpose and miles.

Other tips:

• Log the same day. Memory fades in a week.
• Log the purpose as you go. "Job" is weak. "Install ceiling fan, Rivera" is strong.
• Back up the data. Export your log monthly.
• Save your odometer on January 1. Take a photo of the dashboard.

Other vehicle costs worth knowing

• Tolls and parking: deductible with either method when they are for business trips.
• Phone mounts, dash cams, tool racks: these may be separate deductible business expenses or depreciable equipment, depending on cost and use.
• Actual-expense method and a work truck: if you use a vehicle almost entirely for business, records still matter. The IRS asks about personal use of every vehicle, including a second one.
• Vehicle insurance: a personal policy might not cover business use. Check with your agent, and read handyman insurance mistakes.
• Lease vs buy: each affects how deductions work. This is worth a CPA conversation before you sign.

Bring the log into your weekly books

A mileage log only helps if it reaches your tax return. Make it part of your weekly routine from handyman bookkeeping basics. Each Friday, confirm the week's trips match your job calendar and that no business driving is missing. Then at tax time, your total is ready. For the wider picture of what to deduct, see handyman business taxes and handyman tax season guide.

A quick year-end checklist

1. Photograph the odometer on January 1 and December 31.
2. Total your business miles from the log.
3. Calculate the standard-rate deduction using the rate on irs.gov.
4. If you kept receipts, calculate the actual-expense deduction.
5. Compare them with your CPA and pick the better method allowed for your vehicle.
6. Add business parking and tolls.
7. Store the log with your tax records.

FAQ

What is the IRS standard mileage rate for 2026?

The IRS sets a rate each year and sometimes adjusts it mid-year. Look up the current figure at irs.gov by searching "standard mileage rates" so you use the right number for the tax year.

Can a handyman deduct driving from home to a job site?

Often yes when your home is your principal place of business, because the trip goes to a work location rather than being an ordinary commute. If your situation is different, the rules change. A CPA can confirm which category you fall into.

Do I need a mileage log if I use actual expenses?

Yes. Actual expenses still require your business-use percentage, which depends on knowing business miles versus total miles. You also need receipts for each vehicle cost you deduct.

Can I deduct gas and use the standard mileage rate too?

No. The standard rate already includes fuel, so deducting gas on top would be double counting. Parking and tolls are the usual extras you can add.

What if I did not track miles this year?

Reconstruct what you can from your calendar, invoices and job addresses, and talk to a CPA about how well that will stand up. Then start a real log tomorrow. A few hours of rebuilding now is cheaper than losing a large deduction.

Make logging automatic

The deduction is worth a lot, but only when the records exist. If you want mileage, expenses and job history in one place, HandyBook is designed for this, with a 14-day free trial (card required). Keep your log, confirm the rate at irs.gov, and talk to a CPA about the method that fits your vehicle.