Can I deduct vehicle expenses for business?

If you use your vehicle in your trade or business, you can deduct the part of your vehicle expenses that relates to that use. You can either use the standard mileage rate or the actual expense method to calculate your deduction. The standard mileage rate is a set amount per mile that you can deduct. For 2021, the standard mileage rate is 56 cents per mile. The actual expense method allows you to deduct the actual costs of operating the vehicle for business use, including gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation. Personal use of the vehicle is not deductible. If you use the car for both business and personal purposes, you must divide your expenses based on actual mileage.