Mileage Deduction Calculator 2026

2026 IRS mileage rates

The IRS sets standard mileage rates each year. For 2026 the business rate is 72.5 cents per mile, up from 70¢ in 2025. The rate is meant to cover the full cost of operating a car — gas, maintenance, insurance, registration and depreciation — so you don’t deduct those separately when you use it.

The charitable rate is fixed by law and doesn’t change with inflation. Rates are announced in an IRS notice each December — check irs.gov for the official figures. The calculator fills in the rate automatically when you change the year or purpose, and you can type a different rate (for example, your employer’s reimbursement rate).

How to use the mileage deduction calculator

1. Choose the purpose — business, medical, charity or a military move — and the tax year.
2. Enter your miles. Type the year’s total from your mileage log, or open the trip log and add trips one at a time (tick “round trip” to double the distance).
3. Add parking and tolls, which are deductible on top of the standard rate.
4. Compare actual expenses (business only): enter total miles driven and your car costs to see whether the actual expense method gives a bigger deduction.
5. Estimate your tax savings by choosing your federal bracket and whether you’re self-employed.

Mileage deduction formula

For self-employed drivers the deduction lowers both income tax and self-employment tax, so every business mile is worth more than the deduction rate times your bracket. At a 22% bracket, a self-employed driver saves roughly 33–35 cents in total tax for every dollar of mileage deduction.

Worked example: standard rate vs actual expenses

A self-employed consultant drives 18,000 miles in 2026, of which 12,000 are business miles (a 66.7% business-use percentage), and pays $300 in business parking.

The standard rate wins by $2,033. In the 22% bracket, the $9,000 deduction saves about $1,272 of self-employment tax and $1,840 of federal income tax — roughly $3,112 in total. Actual expenses tend to win for expensive vehicles with high depreciation, poor fuel economy or high insurance, or when business use is very high.

Who can deduct mileage?

• Self-employed people, freelancers and gig workers deduct business mileage on Schedule C (or Schedule F for farmers). This is the most common use — rideshare and delivery drivers, real estate agents, contractors and consultants. See the 1099 tax calculator to see the effect on your total tax.
• Employees generally can’t deduct unreimbursed mileage on their federal return. The One Big Beautiful Bill Act made the suspension of miscellaneous itemized deductions permanent. Exceptions include Armed Forces reservists, qualified performing artists and fee-basis government officials. Ask your employer to reimburse you instead.
• Medical mileage for trips to doctors, hospitals and pharmacies counts toward the medical expense deduction, which you can claim only if you itemize and only above 7.5% of AGI.
• Charitable mileage driving for a qualified charity is deductible at 14¢ per mile if you itemize.
• Moving mileage is deductible only for active-duty military members moving under orders.

Mileage reimbursement

Many employers reimburse employees for driving their own cars for work. Under an accountable plan — you substantiate the miles and return any excess — reimbursement up to the IRS rate is tax-free and doesn’t appear as wages on your W-2. If your employer pays more than the IRS rate, the excess is taxable income. If they pay less, employees can’t deduct the difference federally. Enter the amount you were reimbursed under Tax savings estimate to see the excess or shortfall. Employers may use the calculator as a mileage reimbursement calculator by entering their own rate per mile.

What counts as business mileage?

• Driving between two work locations, or from your office to a client, customer or job site.
• Trips to the bank, post office or supply store for the business.
• Travel to a temporary work location away from your regular place of business.
• From a qualifying home office (your principal place of business) to other work locations.

Commuting doesn’t count — driving from home to your regular office or workplace is personal, even if you take calls on the way.

Mileage log requirements

The IRS requires a written record made at or near the time of each trip. For each trip, record the date, destination, business purpose and miles driven, plus your odometer readings at the start and end of the year. Apps that track trips by GPS are fine. Without a log, the deduction can be disallowed entirely in an audit. If you use actual expenses, also keep receipts for every car expense.

Self-employed? Mileage deductions reduce your quarterly estimates too — see the quarterly estimated tax calculator and our guide to what to do after getting a 1099. Buying a vehicle for business? The depreciation calculator covers Section 179 and bonus depreciation.