Yes, in 2026, the IRS allows taxpayers to choose between the Standard Mileage Rate and the Actual Expense Method for vehicle deductions. For the 2026 tax year, the business mileage rate has increased to 72.5 cents per mile. If you choose the "Actual Expense" route, you can write off fuel costs, along with oil changes, tires, repairs, insurance, and vehicle depreciation. However, you must keep meticulous records, including every fuel receipt and a log of total miles driven versus business miles to determine the deductible percentage. A key restriction remains: if you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for business use. If you start with actual expenses (fuel), you are generally locked out of switching to the mileage rate for that specific vehicle in future years. Most small business owners in 2026 find the mileage rate simpler and more lucrative unless they operate a heavy, fuel-inefficient vehicle.