If you use your personal vehicle for business or work purposes in Puerto Rico, you are entitled to receive compensation or claim a tax deduction for mileage. In this guide, we explain the current rates for 2026 and how to properly document your trips for Hacienda and the IRS.

What is the mileage rate in Puerto Rico for 2026?

For the 2026 tax year, standard mileage rates vary depending on whether your employer follows federal or state guidelines:

Federal Rate (IRS):72.5 cents per mile. This rate increased by 2.5 cents from the previous year and is used by most multinational companies and the private sector on the island.
Puerto Rico Government (Hacienda):Historically, the Department of Hacienda has established rates ranging from 40 to 60 cents per mile for government employees, according to the current Circular Letter.
Deduction for medical or moving purposes:The rate is 20.5 cents per mile.
Charitable purposes:Remains at 14 cents per mile.

How is official mileage calculated on the island?

In Puerto Rico, the standard for determining the distance between municipalities is not Google Maps, but the Distance Matrix of the Highway and Transportation Authority (ACT).

This matrix establishes a fixed "point-to-point" distance between the public plazas of the 78 municipalities. It is the legal tool used by Hacienda auditors to validate that reimbursements are not excessive. Our mileage calculator uses precisely these official data to ensure your compliance.

Requirements for mileage to be deductible

For mileage reimbursement not to be considered taxable income (under an "Accountable Plan"), the employee must provide:

Business purpose
Date of the trip
Place of origin and destination
Mileage log

Important note: Trips from your main residence to your regular workplace (commuting) are not deductible or reimbursable under current labor laws.

Tips for a successful audit

Contemporary record

Don't wait until the end of the month; record your trips weekly.

Separate personal from professional

If you use the same car for both, the IRS and Hacienda require that you can clearly differentiate business use.

Secondary evidence

Meeting invitations, emails, or toll receipts (AutoExpreso) can serve as support.