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Landlord mileage deduction: IRS standard mileage rate vs CRA motor vehicle rules

Driving to your rentals costs real money, but the US and Canada treat those trips very differently. In the US you can usually use the IRS standard mileage rate; in Canada, whether you can deduct anything depends on how many rental properties you own and why you drove. Here's how each works for 2026, with a worked example.

Updated October 20, 2026 · by Tidy Landlord

In the US: the standard mileage rate

IRS Publication 527 says you may be able to deduct ordinary and necessary local transportation expenses you incur to collect rental income or to manage, conserve or maintain your rental property. If you use your own car, pickup or light van, you choose between two methods: actual expenses, or the standard mileage rate.

For 2026 the IRS set two business rates (IRS standard mileage rates):

  • January 1 to June 30, 2026: 72.5 cents a mile
  • July 1 to December 31, 2026: 76 cents a mile

Because the rate changed mid-year, value each trip at the rate for the date you drove. For 2025 returns, the rate was 70 cents a mile.

Watch out for commuting

Publication 527 also says that driving between your home and a rental property is generally a nondeductible commuting cost, unless your home is your principal place of business. Trips between rentals, or to a hardware store and then a rental, are a different matter. If you're not sure where you stand, Publication 527 points to Publication 587 on whether a home office counts as your principal place of business.

Longer trips

If you travel away from home mainly to collect rent or to manage, conserve or maintain a property, those travel costs can be deductible, split between rental and personal activities. Publication 527 says you can't deduct the cost of travel whose main purpose is to improve the property; that cost is recovered through depreciation instead.

In Canada: it depends on how many rentals you own

The CRA's guide T4036 (line 9281 of Form T776, motor vehicle expenses) draws a sharp line:

  • One rental property: you can deduct reasonable motor vehicle expenses only if you earn rent from just one property in the general area where you live, you personally do some or all of the repairs and maintenance, and the expenses are for carrying tools and materials to the property. Driving to collect rent is a personal expense.
  • Two or more rental properties: you can also deduct reasonable expenses to collect rents, supervise repairs and manage the properties, whether they are near your home or not. The properties have to be on at least two different sites away from your principal residence.

Canada has no per-kilometre rate for this deduction. You claim a share of your actual vehicle costs, such as fuel, insurance, licence and registration, maintenance and repairs, and interest or leasing costs, based on the share of kilometres driven for the rentals. T4036 sends you to guide T4002 for how to calculate it. The CRA's per-kilometre allowance rates are for employers paying employees, not for this deduction.

A worked example

These figures are made up to show the method.

US landlord with two rentals: 1,200 rental miles from January to June and 900 from July to December, none of it commuting. 1,200 × $0.725 = $870, plus 900 × $0.76 = $684, for a standard-mileage deduction of $1,554. Parking fees and tolls for those trips can be deducted on top of the standard rate.

Canadian landlord with two rentals: 18,000 km driven in the year, 2,700 km of them to collect rent, supervise repairs and manage the properties, which is 15%. Fuel, insurance, licence and repairs come to $9,000, so the motor vehicle expense is $9,000 × 15% = $1,350. Capital cost allowance on the vehicle itself is worked out separately.

With only one rental, the same Canadian landlord could claim only the kilometres driven to bring tools and materials for repairs they did themselves.

What your mileage log needs

  • The date of each trip
  • Where you went: which property, or the supplier on the way
  • Why you went: rent collection, a repair, showing the unit, supervising a contractor
  • Distance, from odometer readings or a map, in miles or kilometres
  • Your total distance for the year, from odometer readings at the start and end, so you can work out the rental-use share
  • For actual expenses: receipts for fuel, insurance, repairs and other vehicle costs

Write trips down as you make them, not from memory at tax time. IRS Publication 463 (chapter 5) covers the records the IRS expects for car expenses.

Frequently asked questions

What is the IRS mileage rate for 2026?

For business use, including rental activities, it is 72.5 cents a mile from January 1 to June 30, 2026 and 76 cents a mile from July 1 to December 31, 2026, according to the IRS standard mileage rates page.

Can landlords deduct mileage to their rental property?

In the US, usually yes for trips to collect rent or to manage, conserve or maintain the property, but Publication 527 says trips between your home and a rental are generally nondeductible commuting unless your home is your principal place of business. In Canada, it depends on how many rental properties you own.

Can I deduct driving to collect rent in Canada?

Only if you own two or more rental properties on at least two different sites away from your home. With one property, the CRA's T4036 says driving to collect rent is a personal expense.

Is there a per-kilometre rate for rental property in Canada?

No. Landlords claim a reasonable share of actual vehicle costs based on rental-use kilometres. The CRA's per-kilometre allowance rates apply to allowances employers pay employees.

Sources

This guide is general information to help you organize your records. It is not tax, legal or accounting advice, and rules and amounts change every year. Confirm how they apply to you with a qualified tax professional or the official sources linked above before you file.

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