Deducting Mileage as a Landlord: How to Track and Claim It

Miles you drive for your rental business—property inspections, tenant meetings, trips to the hardware store for supplies—are deductible. The IRS lets you use the standard mileage rate so you don't have to track actual vehicle costs. Track your miles so you can deduct every eligible mile and cut your taxable income. For deadlines and the full tax picture, see our Tax Prep Checklist; for what to keep and how long, see What Records to Keep.

What Counts as Business Miles

Business miles are trips you make for your rental activity. Examples: driving to the rental to show it, inspect it, or meet a tenant; going to the bank to deposit rent; picking up supplies or meeting a contractor at the property; driving between rental properties. Ordinary commuting from your home to a regular workplace (e.g. an office you go to every day) is generally not deductible. But trips that start or end at a rental property for a business purpose usually count. When in doubt, keep the trip in your log with a note—your CPA can help you classify at tax time.

The Standard Mileage Rate

Instead of tracking gas, insurance, and depreciation, you can use the IRS standard mileage rate for each business mile. For 2025 (filing in 2026), the rate is 70 cents per mile; for 2026 (filing in 2027), the rate is 72.5 cents per mile. The IRS updates rates annually—see the IRS standard mileage rates for the current year. Multiply your business miles by the rate for the year to get your deduction.

How to Keep a Mileage Log

Keep a contemporaneous log—record the date, destination, purpose (e.g. "inspection at 123 Main St"), and miles. A notebook, spreadsheet, or app works. The IRS expects documentation if you're audited; reconstructing miles at the end of the year is less reliable. Log each trip when it happens (or at least weekly) so you don't miss miles or guess. Store the log with your other tax records; for how long, see What Records to Keep.

Business vs Personal

Only business miles are deductible. If you use the same car for personal and rental use, log only the rental-related trips. Don't deduct the drive from home to your day job or purely personal errands. Keeping a clear log with purpose for each trip makes it easy to separate business from personal and supports your deduction if the IRS asks.