Free tool
Mileage deduction calculator
Standard rate vs. actual costs, decided.
Your result is an estimate based on the answers you enter. It is not filed or stored anywhere.
Method
How this calculator works
The standard mileage method multiplies your business miles by the IRS per-mile rate. For 2026 the IRS raised the business rate mid-year, so the calculator splits the year: 72.5¢ per mile for January 1–June 30 and 76¢ per mile for July 1–December 31 (both rate fields stay editable). The actual-expense method instead deducts your real vehicle costs — gas, insurance, repairs, depreciation — multiplied by your business-use percentage.
The standard rate usually wins for efficient cars driven many business miles; actual expenses win for expensive vehicles with high running costs and high business use. One commitment rule matters: to ever use the standard rate on a car, you generally must use it the first year that car is in business service.
Estimates, not advice
Every figure this tool produces is a planning estimate built from the numbers you enter and simplified assumptions documented above. It is educational content, not individualized financial, legal, or tax advice. Rates, limits, and thresholds change — annual constants are reviewed each January, and you should confirm anything decision-critical against primary sources or a professional.
Questions
FAQ
What counts as a business mile?
Driving between work sites, to clients, suppliers, or business errands. Commuting from home to a regular workplace does not count; trips from a qualifying home office generally do.
What records do I need?
A contemporaneous log: date, destination, purpose, miles. A tracking app satisfies this — see our mileage-app comparison.
Why are there two rates for 2026?
The IRS normally sets one business rate per year, but for 2026 it raised the rate mid-year as fuel costs climbed — 72.5¢ per mile through June 30 and 76¢ per mile from July 1. Split your miles by when you drove them; both rate fields are editable so the tool never goes stale.