Mileage Deduction Calculator
The standard mileage method turns business driving into a deduction at a flat cents-per-mile rate — 70¢ per mile as of 2025, indexed for 2026. Enter your business miles and marginal tax rate to see both the deduction itself and the actual tax it saves, which is the number that matters.
Standard mileage vs actual expenses
The standard rate covers fuel, maintenance, insurance and depreciation in one number — no receipts to track. The default here (70¢) is the 2025 IRS rate; update it when the IRS announces the 2026 figure.
Alternative: the actual-expense method (track every car cost × business-use %). Vehicles that are expensive to run often do better on actual; efficient cars usually win with the standard rate.
Eligible driving: business trips between work locations, client visits, supply runs. Commuting from home to your main workplace does NOT count — ever.
Frequently asked questions
What is the 2026 standard mileage rate?
The 2025 rate is 70¢ per business mile; the IRS sets the 2026 figure each December — update the rate field when it lands.
Does commuting count?
No — driving between your home and a regular workplace is never deductible, under either method.
Can I switch methods?
Yes, with a catch: if you use the standard method in the first year the car is used for business, you can switch between methods later; if you start with actual expenses (including depreciation), switching is restricted.
Related tools
- Rates: IRS standard mileage rates (70¢/mile for business, 2025; announced annually). Rules: IRS Publication 463.
Last updated: 2026-09-08