Calculate Mileage Deduction Calculator (2026)
Estimate your tax deduction for business driving. Enter your business miles for the year and multiply by the IRS standard mileage rate — that's your deduction.
| Business miles | 0 |
| Rate per mile | $0.00 |
| At a 22% marginal tax rate, saves you ≈ | $0 |
How it works
The IRS lets you deduct a fixed amount per business mile instead of tracking actual car expenses: deduction = business miles × standard mileage rate. The "tax saved" row multiplies the deduction by a 22% marginal rate to show the rough cash value — adjust for your own bracket.
Formula & worked example
Formula: Deduction = business miles × the per-mile rate. The rate field starts at $0.70 a mile — edit it if your rate differs. The estimated tax saving alongside assumes a 22% marginal bracket: deduction × 22%.
Worked example: Drive 12,000 business miles at $0.70 a mile and the deduction is $8,400 — an estimated $1,848 of tax saved at 22%.
When to use this
- You drive your own car to clients, job sites or deliveries and have a year of trips to turn into a deduction figure.
- You are a rideshare or delivery driver adding up the miles the apps and your own log recorded.
- Tax time is close and you want the size of the deduction before deciding whether the standard rate beats tracking actual car expenses.
- You are planning next year's driving and want to know what each business mile is worth at the rate in the tool.
How to use it, step by step
- Total your business miles for the year from your mileage log — business trips only, not the home-to-regular-workplace commute.
- Check the rate field: it starts at $0.70 a mile, the rate the page labels as the 2026 IRS standard rate; edit it if you are working a different year.
- Click Calculate deduction to see the deduction amount.
- Read the tax-saved line as a rough value only — the tool assumes a 22% marginal rate for that row, so adjust your expectations to your own bracket.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Business miles driven | Total miles driven for business purposes in the year | Occasional client trips: hundreds; full-time driving work: 20,000+ |
| IRS standard rate | The per-mile rate the deduction is multiplied by | Starts at $0.70 per mile, labelled on the page as the 2026 rate — verify at irs.gov before filing |
Another worked example
A self-employed tradesperson who logged 8,750 business miles, at the $0.70 per-mile rate the tool starts with, gets an estimated deduction of $6,125. At the 22% marginal rate the tool assumes for its savings row, that deduction is worth about $1,348 of tax saved — a deduction lowers the income you are taxed on; it is not $6,125 back in your pocket.
Frequently asked questions
Standard mileage rate or actual expenses — which is better?
The standard rate is simpler and wins for most people with economical cars. Actual expenses (gas, insurance, depreciation, repairs, prorated by business-use %) can beat it for expensive vehicles or high repair bills. You can switch methods in later years, but there are restrictions — check IRS rules first.
What counts as business miles?
Driving to meet clients, job sites, the post office for business mail, supply runs, and business travel. Commuting from home to a regular workplace does not count. If your home is your principal place of business, trips from home to clients generally do count.
Do I need a mileage log?
Yes — the IRS requires a contemporaneous log: date, destination, business purpose, and miles for each trip. A simple spreadsheet or notes-app log works fine, as long as you keep it up to date.
What rate applies to charity or medical driving?
Different, lower per-mile rates — the IRS sets separate standard rates for charitable work and for medical or moving-related driving by eligible filers, and they are not the business rate this tool starts with. If your miles fall in one of those categories, look up that category's rate for the year and type it into the rate field instead.
I drive for a rideshare or delivery app — which miles count?
Generally the miles driven for the work: heading to a pickup with the app on and available, driving to collect an order, and the trip itself, not just the paid leg with a passenger or parcel in the car. Keep your own log alongside the app's summary, because platforms do not all record the unpaid positioning miles the same way. This is general information, not tax advice.
Can my employer just reimburse me at this rate instead?
Yes — many employers reimburse business driving at the standard mileage rate under an accountable plan, in which case the reimbursement is generally not taxable wages and you do not also claim the same miles as a deduction. Reimbursement and deduction are two routes for the same miles, never both at once.
🚗 Track every mile automatically
Grab the Small Business Expense & Mileage Tracker — a done-for-you mileage log plus expense spreadsheet.