The Mileage Rate a South Bay Landlord Can Deduct for Property Trips in 2026

Published August 10, 2026

The IRS standard mileage rate for business driving changed mid year in 2026. An Inglewood landlord who drives to rentals for showings, repairs, and inspections needs to split trips into two periods and apply a different cents per mile rate to each.

The short answer

No, a single rate does not apply for all of 2026. The IRS standard mileage rate for business driving was 72.5 cents per mile from January 1 through June 30, 2026, then rose to 76 cents per mile from July 1 through December 31, 2026. An Inglewood landlord driving to rentals for showings, repairs, or inspections has to split trips across those two periods and apply the correct rate to each.

Last verified: August 10, 2026

Why the rate isn't one number this year

Most years, the IRS sets a single standard mileage rate that applies from January 1 through December 31. The IRS's standard mileage rates page shows 2026 wasn't one of those years. The rate started at 72.5 cents per mile for the first half of the year, then the IRS raised it to 76 cents per mile effective July 1, 2026, a 3.5 cent increase. That follows the 2025 rate, which held steady all year at 70 cents per mile.

For an Inglewood landlord, this isn't a rounding issue. Landlords drive a lot: showings for vacant units, meeting a contractor at the property, picking up supplies, dropping off a lease for signature, responding to a tenant call in person. Multiply a few thousand miles a year by the wrong half of a 3.5 cent gap and the error compounds fast.

What counts as deductible property mileage

The standard mileage rate covers the business use of a personal vehicle. For a landlord, that generally means driving between rental properties, to and from a property for management purposes such as showings, inspections, tenant meetings, and meeting vendors or contractors on site, and errands directly tied to operating the rental, like picking up materials for a repair you're handling yourself.

Commuting from your home to a fixed place of business you visit every day doesn't count the same way a trip to a rental property does, and if you have a qualifying home office, trips from that home office to your rental properties are generally treated as business mileage rather than commuting, which is one more reason the regular and exclusive use test for a home office matters for landlords who drive a lot.

Working the number across the split rate

Say an Inglewood landlord logs 4,000 business miles managing a handful of South Bay rentals in 2026, split evenly across the year, 2,000 miles before July 1 and 2,000 miles after.

| Period | Miles | Rate | Deduction |

|---|---|---|---|

| January 1 to June 30, 2026 | 2,000 | 72.5 cents per mile | $1,450 |

| July 1 to December 31, 2026 | 2,000 | 76 cents per mile | $1,520 |

| Total | 4,000 | blended | $2,970 |

Get the split wrong, applying the higher second half rate to the whole year, and you overstate the deduction by $70 on this example alone. Applying the lower first half rate to the whole year understates it by the same amount. The fix is mechanical: keep a mileage log with dates, and total the miles driven in each half of the year separately before applying the rate.

What the IRS expects in your mileage log

The standard mileage rate replaces tracking actual vehicle expenses, gas, maintenance, insurance, depreciation, but it does not replace the need to substantiate the mileage itself. A defensible log records the date of each trip, the starting and ending odometer reading or total miles, the destination, and the business purpose, for example "1420 Century Blvd, Inglewood, unit turnover walkthrough." A single annual estimate without contemporaneous trip level detail is the kind of record that doesn't hold up if the deduction is questioned.

FAQ

Do I use the standard mileage rate or track actual vehicle expenses?

You choose one method per vehicle, and the choice has rules about switching later. The standard mileage rate is simpler for most landlords because it doesn't require tracking gas, maintenance, insurance, and depreciation separately. The tradeoff for a South Bay landlord managing several properties spread across cities is usually worth it given how much windshield time that involves.

Does the mileage rate apply to trips between two of my own rental properties?

Yes. Driving directly between rental properties you own and manage is generally treated as business mileage, distinct from your personal commute to a single fixed workplace.

What if I only drove to my rentals occasionally in 2026?

The split rate still applies. Whatever miles fall in the first half of the year get the 72.5 cents per mile rate, and whatever miles fall on or after July 1 get the 76 cents per mile rate, regardless of how few total miles you drove.

Is the 2026 mid year change unusual?

Yes, in the sense that most years the IRS sets one rate for the full calendar year. A mid year adjustment means landlords who drive to their properties need to watch for the effective date and not assume the rate they used in January still applies in December.

Does this rate apply to a car, truck, or SUV I use partly for personal reasons too?

Yes, but only the business use miles are deductible. If you use the same vehicle for personal driving, your log needs to separate business trips from personal ones, since the rate applies only to the miles actually driven for the rental activity.

This is general information, not tax advice. Confirm your mileage log format, method election, and total deduction with a CPA before you file.

Topics: taxes, mileage rate, inglewood, vehicle expenses

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