GUIDE

Is my commute tax-deductible when self-employed?

Q: Is my commute tax-deductible when self-employed?

Generally, no. The drive from your home to your first jobsite and from your last jobsite back home is considered a personal commute and is not deductible. TradesTimer helps you distinguish these by automatically logging only the trips between jobsite stops.

By Ryder Wishart — years on the tools, then time tracking in a contractor’s back office · Updated 2026-06-08

The Commute Rule

Generally, the IRS and CRA do not allow you to deduct the cost of driving from your home to your first job of the day or from your last job back to your home. This is considered a personal commuting expense.

However, once you arrive at your first jobsite, the travel between different client locations is fully deductible.

Tracking Business Trips

To claim deductions, you must maintain a valid log. For the IRS, this means recording the date, business miles, destination, and business purpose for every trip, updated at least weekly.

TradesTimer automates this by using background GPS to identify when you arrive at a jobsite and when you depart for the next, creating a precise log of trips and distances without manual timers.

Standard Mileage Rates

For 2025, the IRS standard mileage rate is 70 cents per mile. For 2026, this increases to 72.5 cents per mile.

In Canada, the CRA 2025 rate is $0.72/km for the first 5,000 km and $0.66/km thereafter. For 2026, it is $0.73/km for the first 5,000 km and $0.67/km thereafter (provinces; territories add 4 cents).

Note: This is general info, NOT tax advice.

FAQ

Can I deduct gas instead of mileage?

You can choose between the standard mileage rate or actual expenses, but if you use the standard rate, you must elect it in the first year the vehicle is used for business.

What if I have a home office?

If you have a qualified home office, the trip from that office to your first jobsite may be considered a business trip rather than a commute.

Last updated 2026-06-08.