🚗 IRS Mileage Deduction Calculator
Compare standard mileage rate vs. actual vehicle expenses to maximize your 2026 tax deduction.
Calculate Your Deduction
Enter your business miles
See your deduction and compare standard vs. actual expense methods.
IRS Mileage Rate History
Standard Mileage vs Actual Expense Method
The IRS allows self-employed individuals and business owners to deduct vehicle expenses using one of two methods. Understanding the difference helps you maximize your tax savings.
Standard Mileage Method: Multiply your business miles by the IRS-set rate (72.5 cents per mile for 2026). This rate covers all operating costs including gas, insurance, maintenance, repairs, and depreciation. The main advantage is simplicity — you only need to track miles, not individual expenses.
Actual Expense Method: Track all vehicle-related costs throughout the year (gas, oil, insurance, registration, repairs, tires, depreciation), then multiply the total by your business-use percentage. This requires more record-keeping but can yield a larger deduction for expensive or high-maintenance vehicles.
Generally, standard mileage works best for fuel-efficient vehicles driven many miles, while actual expenses favor expensive vehicles with high depreciation or older cars with significant repair costs.
2026 IRS Mileage Rate
The IRS adjusts the standard mileage rate annually based on vehicle operating costs. The 2026 rate of 72.5 cents per mile is the highest ever set.
| Year | Business Rate | Change |
|---|---|---|
| 2023 | 65.5¢/mile | — |
| 2024 | 67.0¢/mile | +1.5¢ |
| 2025 | 70.0¢/mile | +3.0¢ |
| 2026 | 72.5¢/mile | +2.5¢ |
The steady increases reflect rising costs for fuel, insurance, and vehicle maintenance.
Mileage Deduction Examples
- Freelance consultant (8,000 miles): 8,000 × $0.725 = $5,800 deduction
- Real estate agent (15,000 miles): 15,000 × $0.725 = $10,875 deduction
- Rideshare driver (30,000 miles): 30,000 × $0.725 = $21,750 deduction
- Sales rep (25,000 miles): 25,000 × $0.725 = $18,125 deduction
At a 22% tax bracket, a $10,000 mileage deduction saves approximately $2,200 in federal taxes.
How to Track Business Miles (Recordkeeping)
The IRS requires contemporaneous records — meaning you should log trips as they happen, not reconstruct them later. Your records should include:
- Date of each trip
- Destination and business purpose
- Miles driven
- Odometer readings at start and end of year
Popular tracking methods include mileage apps (MileIQ, Stride, Everlance), paper logbooks, or spreadsheets. Keep records for at least 3 years.
Important: Commuting from home to your regular workplace is NOT deductible. Only business-related driving qualifies.
Frequently Asked Questions
What is the IRS mileage rate for business in 2026?
The IRS standard mileage rate for business driving in 2026 is 72.5 cents per mile. This is the highest rate ever set, reflecting increased vehicle operating costs.
What counts as business miles vs commuting?
Business miles include driving to client meetings, job sites, business errands, and traveling between work locations. Commuting from home to your regular workplace is NOT deductible. If your home is your principal place of business, trips to other locations may qualify.
Should I use standard mileage or actual expenses?
Standard mileage (72.5¢/mile) is simpler and often better for fuel-efficient cars or high-mileage drivers. Actual expenses may be better for expensive vehicles with high depreciation or older cars with significant repair costs. Use this calculator to compare both methods.
Do I need receipts or a mileage log?
Yes. The IRS requires contemporaneous records. Keep a mileage log with date, destination, purpose, and miles for each trip. For actual expenses, keep receipts for gas, repairs, insurance, and other costs.
Can I switch methods later?
You can switch from standard to actual in later years, with restrictions. If you use actual expenses (including depreciation) first, you generally cannot switch to standard for that vehicle. Leased vehicles must use the same method for the entire lease.