Mileage Deduction Calculator

How the mileage deduction works

If you use your own vehicle for business, you can usually deduct either your actual car costs or the IRS standard mileage rate. The standard rate for 2026 started at 72.5 cents per mile and was raised to 76 cents for miles driven from July 1, 2026. Multiply your business miles in each period by the matching rate, and the total comes off your net profit, which lowers both income tax and self-employment tax.

What counts as a business mile

• Driving between jobs, to pickups and to drop-offs while you are working.
• Trips to buy supplies or to meet clients.
• Commuting between home and a regular workplace does not count. Rules for the first trip of a day when you work from home or have no fixed workplace are nuanced, so keep records and ask a professional about your case.

Records you need

Keep a log with the date, the miles and the purpose of each trip, plus your odometer reading at the start and end of the year. A mileage app works as long as you can reproduce the entries. Without a log, a deduction is hard to defend if the IRS asks.

Parking and tolls on top of the rate

The standard rate covers gas, repairs, tires, insurance and depreciation. Parking fees and tolls for business trips can generally be deducted in addition to it.

Standard rate or actual expenses?

For a car you own, you generally have to choose the standard rate in the first year you use it for business if you want the option later. Actual expenses need every receipt and a business-use percentage. Run both numbers once, and use our car cost per mile calculator to see your real cost per mile.

Frequently asked questions

What is the 2026 IRS mileage rate?

The IRS first set the 2026 business rate at 72.5 cents per mile, then raised it to 76 cents for miles driven from July 1, 2026.

Do I need a mileage log?

Yes. The IRS expects a record of date, miles and business purpose for each trip.

Can I deduct mileage if I am an employee?

For most employees, unreimbursed business mileage is not deductible on the federal return. This calculator is for self-employed people.

Is mileage deducted from my income or my tax?

From your net profit, which reduces your taxable income. The tax saved depends on your bracket and on self-employment tax.

What about the rate in 2027?

The IRS announces new rates near the end of each year. We update the calculator when the figures are published.

Sources

• IRS: 2026 business standard mileage rate is 72.5 cents per mile (Dec. 29, 2025)
• IFEBP: IRS raises the 2026 business mileage rate to 76 cents from July 1, 2026
• IRS Publication 463: Travel, gift, and car expenses
• IRS: Self-employment tax (Social Security and Medicare)

Estimates only, not tax advice. See our disclaimer.

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