Finance
Mileage Deduction Calculator
The IRS standard mileage rate is the fastest way to deduct vehicle use. Enter your business miles and marginal tax rate to see the deduction and what it saves you.
Quick answer: At the 2026 standard mileage rate of $0.725 per business mile, 10,000 business miles is a $7,250 deduction.
How it works
1. Log your business miles
Track miles driven for business — client visits, job sites, deliveries — and keep a contemporaneous log of date, purpose, and distance. Commuting from home to a regular workplace does not count. Only the business-use portion of your driving is deductible.
2. Multiply by the standard mileage rate
Multiply your business miles by the IRS standard mileage rate ($0.725 per mile for 2026). This single rate bundles gas, depreciation, insurance, and maintenance, so you do not track individual car costs. A car driven 10,000 business miles yields roughly a $7,250 deduction.
3. Compare against the actual-expense method
Alternatively, the actual-expense method deducts the business-use percentage of real costs — fuel, repairs, insurance, and depreciation. The standard mileage rate is simpler and often wins for fuel-efficient cars, while actual expenses can be larger for expensive or heavy vehicles. Pick the method that yields the bigger deduction.
Frequently asked questions
What is the 2026 standard mileage rate?
This calculator uses $0.70 per business mile (illustrative — confirm the current-year rate at irs.gov). Multiply your logged business miles by the rate to get the deduction.
What counts as a business mile?
Driving between job sites, to client meetings, to pick up supplies, or to the bank for the business all count. Your regular commute from home to a fixed workplace does not.
Standard mileage or actual expenses?
The standard rate is simpler and often larger for high-mileage drivers. Actual expenses (gas, insurance, depreciation × business-use %) can win for expensive vehicles. You must pick the method in the first year you use the vehicle.
What is the 2026 standard mileage rate?
The IRS standard business mileage rate for 2026 is $0.725 per mile (72.5 cents), up 2.5 cents from 2025. Multiplying business miles by this rate gives your deduction and bundles in gas, maintenance, insurance, and depreciation, so you do not deduct those separately.
Can I deduct my commute to work?
No. Driving between your home and a regular place of work is a nondeductible commute, even if you take work calls on the way. Deductible business mileage includes travel between job sites, to clients, or to temporary work locations away from your usual workplace.
Do I have to keep a mileage log?
Yes — the IRS requires a contemporaneous record showing the date, business purpose, and miles for each trip. A written log, spreadsheet, or mileage-tracking app all qualify. Without adequate records, the deduction can be disallowed in an audit even if you actually drove the miles.
Which is better, standard mileage or actual expenses?
It depends on your vehicle. The standard mileage method is simpler and usually wins for fuel-efficient, lower-cost cars, while the actual-expense method can produce a larger deduction for expensive vehicles or those with high repair and depreciation costs. If you want to use standard mileage, you generally must choose it in the first year you use the car for business.