Mileage Deduction Calculator
Estimate your tax savings from business mileage deductions.
Based on IRS standard mileage rates. Actual savings depend on your individual tax situation.
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Sign up for the waitlistHow the IRS Mileage Deduction Works
Standard mileage rate vs. actual expenses
If you drive for business, medical purposes, charity, or a qualified move, the IRS lets you deduct a set amount per mile driven. For 2025, the standard mileage rate is 70 cents per mile for business driving. For 2026, the rate increases to 72.5 cents per mile.
You have two options for claiming vehicle expenses:
- Standard Mileage Rate — Multiply your business miles by the IRS rate. Simple, no receipt tracking for gas or maintenance needed.
- Actual Expense Method — Track every vehicle cost (gas, insurance, repairs, depreciation) and deduct the business-use percentage.
The standard mileage method works best for most people — especially if you drive a fuel-efficient car or don’t want the burden of tracking every gas receipt. The actual expense method can yield a larger deduction if you drive an expensive vehicle with high operating costs.
Either way, you must keep a mileage log with five elements the IRS requires: date, destination, business purpose, starting odometer, and ending odometer. Without this log, the IRS can disallow your entire deduction in an audit.
Standard Mileage vs. Actual Expenses: Which Saves More?
Compare both methods to maximize your deduction
The right method depends on your vehicle and driving habits:
| Factor | Standard Mileage | Actual Expenses |
|---|---|---|
| Best for | High-mileage, fuel-efficient cars | Expensive vehicles, high repair costs |
| Tracking effort | Mileage log only | Every receipt + mileage log |
| First-year requirement | Must choose in first year of use | Can switch from standard later |
| Depreciation | Built into the rate | Claimed separately (MACRS) |
| Lease restrictions | Must use for entire lease term | Can switch year to year |
Pro tip: Calculate both methods in your first year of business use. If the actual expense method gives a bigger deduction, you can always switch back to standard mileage in future years. But if you start with actual expenses on a car you own, you cannot switch to standard mileage for that vehicle.
Use SparkReceipt’s receipt scanner to automatically capture and categorize gas, maintenance, and repair receipts if you choose the actual expense method.
How to Maximize Your Mileage Deduction
Commonly missed deductible trips
Most self-employed workers leave money on the table by forgetting deductible trips. These all count as business miles:
- Driving between job sites or client meetings
- Trips to the office supply store, post office, or bank for business
- Driving to professional development events or conferences
- Travel to a temporary work location (under 1 year)
- Rideshare and delivery driving (the miles between pickups count too)
What doesn’t count: Your regular commute from home to your main office. However, if you have a qualifying home office, every business trip from home becomes deductible since your home is your principal place of business.
The average self-employed person drives 12,000–15,000 business miles per year. At the 2026 rate of 72.5¢/mile, that’s a $8,700–$10,875 deduction — reducing both your income tax and self-employment tax.
The key is consistent tracking. Start logging every trip from day one with a mileage tracking app so you never miss a deductible mile.
Mileage Deduction FAQ
What is the IRS mileage rate for 2026?
The IRS standard mileage rate for 2026 is 72.5 cents per business mile, up from 70 cents in 2025. Medical and moving mileage (for active military) is 21 cents per mile, and charitable driving remains at 14 cents per mile.
Can I deduct mileage if I'm a W-2 employee?
Generally no. The Tax Cuts and Jobs Act (TCJA) eliminated the unreimbursed employee expense deduction for W-2 employees from 2018 through 2025, and the One Big Beautiful Bill Act (OBBBA) made this permanent. Only self-employed individuals, independent contractors, and business owners can claim the mileage deduction.
Do I need a mileage log for the IRS?
Yes. The IRS requires contemporaneous records with five elements: the date of the trip, destination, business purpose, and odometer readings (start and end). Without a proper log, the IRS can disallow your entire mileage deduction in an audit. Digital mileage tracking apps are accepted as valid records.
Can I switch between standard mileage and actual expenses?
It depends. If you used standard mileage in the first year you placed a car in business service, you can switch to actual expenses in a later year. However, if you chose actual expenses first (on a car you own), you generally cannot switch to standard mileage for that vehicle. For leased vehicles, you must use the same method for the entire lease term.
Does mileage deduction reduce self-employment tax?
Yes. The mileage deduction reduces your net self-employment income on Schedule C, which directly lowers both your income tax and your self-employment tax (Social Security + Medicare). At the 15.3% SE tax rate, every $1,000 in mileage deductions saves you an additional $153 in SE tax on top of your income tax savings.
What counts as deductible business mileage?
Business mileage includes driving between work locations, trips to clients or customers, travel to business meetings, runs to the bank or post office for business, and trips to buy supplies. Your regular commute from home to a fixed office does not count. However, if you have a qualifying home office, all business trips from home are deductible.