Mileage Deduction Calculator

Quick answer

2026 has TWO business standard mileage rates: 72.5¢ a mile for miles driven January 1 through June 30, 2026, and 76¢ a mile for miles driven July 1 through December 31, 2026. This calculator values each period separately and compares the result against the actual-expense method.

What this includes

  • Business miles at 72.5¢ before July 1 and 76¢ after
  • Medical and qualified moving miles at 20.5¢ then 23.5¢, and charitable at 14¢ all year
  • The actual-expense method: fuel, insurance, repairs, registration, lease payments and depreciation
  • The business-use percentage, derived from business miles over total miles driven
  • Parking and tolls as a separate line, deductible on top of either method
  • Commuting miles, collected and then excluded on purpose

What it excludes

  • The § 280F depreciation limits on passenger vehicles, and lease inclusion amounts
  • The basis reduction that using the standard rate causes over time
  • Whether you are eligible for the deduction at all
  • State conformity, which differs from federal treatment in several states

The 2026 rule most people get wrong: there is no single 2026 mileage rate. The IRS revised the optional standard rates effective July 1, 2026, so the rate that applies to a trip is decided by WHEN THE MILES WERE DRIVEN — not by when you file. A trip on June 30 is worth 72.5¢ a mile; the same trip on July 1 is worth 76¢. On 25,000 business miles split evenly, using a single 72.5¢ rate for the whole year understates the deduction by $438. Your mileage log now has to show the date of every trip for the rate as well as for substantiation.

How these figures are calculated · IRS standard mileage rates · IRS Publication 463

2026 tax inputs and methodology reviewed by Deepak Middha, Chartered AccountantPassed the Series 65 examinationMethodologyEditorial standardsMethodology reviewed

Private by design. No SSN, no bank login, no IRS login, no payroll password. No account is required. Calculator inputs are processed locally in your browser and are not transmitted to or stored by TaxSaveIQ. Standard website analytics and technical logs may still apply. See our Privacy Policy. Educational estimate only.
What kind of miles?
Each purpose has its own rate, and every rate except charitable changed on July 1, 2026.
Eligible business miles, by period
mi
Rate: 72.5¢/mile
mi
Rate: 76¢/mile
mi
Home ↔ your regular workplace. Never deductible — collected here so it is excluded on purpose, not by accident.
mi
Sets the business-use percentage the actual-expense method needs
Parking and tolls
$
Deductible on top of EITHER method — they are not built into the standard rate. Parking at your own regular workplace is commuting and is not deductible.
Actual vehicle expenses
Vehicle and method
Tax savings estimate
$
Decides whether the deduction sits below or above the Social Security wage base
$
Wages consume the wage base first, which lowers the saving
Only used for the 0.9% Additional Medicare threshold
For self-employed taxpayers the deduction may also reduce self-employment tax by up to about 14.1%, because it reduces the net profit that Schedule SE is computed on. The incremental payroll-tax benefit is lower once net earnings pass the Social Security wage base: above that point only the 2.9% Medicare portion remains, so the same deduction saves roughly 2.7% instead. Enter your wages and profit to see the marginal saving on your own figures rather than a flat rate.
Your 2026 deduction
Deduction
$5,940
Estimated tax saving
$2,146
Jan 1 – Jun 30, 2026 — 4,000 mi$2,900
4,000 mi × 72.5¢/mile
Jul 1 – Dec 31, 2026 — 4,000 mi$3,040
4,000 mi × 76¢/mile
Standard-rate deduction$5,940
Blended rate actually applied: 74.3¢/mile
Standard method total$5,940
Business-use percentage53.3%
8,000 business miles ÷ 15,000 total miles driven
Commuting miles excluded3,000 mi
Not deductible, and deliberately not counted above
Income tax saved at 22.0%$1,307
Self-employment tax saved$839
All of the deduction sits below the $184,500 Social Security wage base, so it saves the full 14.13%.
Total tax saving — an effective 36.1%$2,146
Marginal income tax plus the payroll tax actually saved on your figures
What this means. You entered 4,000 eligible business miles in January 1 through June 30, 2026 at 72.5¢/mile ($2,900), and 4,000 in July 1 through December 31, 2026 at 76¢/mile ($3,040). Combined standard-rate deduction: $5,940.
The 3,000 commuting miles entered are NOT included in the deduction. Travel between home and a regular workplace is personal, however far it is. Trips from a qualifying home office to a client or job site are business miles.
📒 Keep a mileage log. The IRS revised the optional standard mileage rates effective July 1, 2026, so 2026 has two rate periods. The rate that applies to a trip is set by the date the miles were driven — miles driven January 1 through June 30 use the first-half rate, and miles driven July 1 through December 31 use the second-half rate. Your log therefore has to show when each trip happened as well as its purpose and distance.

What business miles are worth in 2026

Five mileage levels, split evenly between the two rate periods. The last column is the point of the table: it is the error a calculator still running a single full-year rate would make.

Business miles only, split between the two 2026 rate periods. The final column shows what a single full-year rate of 72.5¢ would have produced, which is what a calculator that has not been updated for the July 1 revision still reports.
Business milesJan 1 – Jun 30, 2026Jul 1 – Dec 31, 2026Total deductionBlended rateAt 72.5¢ all yearUnderstated by
1,000 mi500 mi · $363500 mi · $380$74374.3¢$725$17.50
5,000 mi2,500 mi · $1,8132,500 mi · $1,900$3,71374.3¢$3,625$87.50
10,000 mi5,000 mi · $3,6255,000 mi · $3,800$7,42574.3¢$7,250$175.00
15,000 mi7,500 mi · $5,4387,500 mi · $5,700$11,13874.3¢$10,875$262.50
25,000 mi12,500 mi · $9,06312,500 mi · $9,500$18,56374.3¢$18,125$437.50

Understand your result

Why 2026 has two mileage rates

The IRS revised the optional standard mileage rates effective July 1, 2026, so 2026 has two rate periods. The rate that applies to a trip is set by the date the miles were driven — miles driven January 1 through June 30 use the first-half rate, and miles driven July 1 through December 31 use the second-half rate.

2026 optional standard mileage rates, in cents per mile
PeriodBusinessMedicalQualified movingCharitable
Jan 1 – Jun 30, 202672.5¢20.5¢20.5¢14¢
Jul 1 – Dec 31, 202676¢23.5¢23.5¢14¢

Which rate applies: the date the miles were driven decides it. A trip on June 30, 2026 uses 72.5¢ a business mile; the same trip on July 1, 2026 uses 76¢. Nothing about your filing date changes this.

The charitable rate is fixed by statute at 14¢ per mile and is not adjusted for inflation, so it is the same in both 2026 periods. Medical and qualified moving rates both rose on July 1, 2026, from 20.5¢ to 23.5¢ a mile.

The moving-expense deduction is suspended for most taxpayers. The qualified moving rate is generally available only to active-duty members of the Armed Forces moving under a military order incident to a permanent change of station.

Commuting versus business miles

Travel between home and a regular workplace is commuting, and it is personal however far it is, however early it starts, and however much work equipment is in the car. This is the single most common reason a mileage deduction is reduced on examination, which is why the calculator collects commuting miles and then visibly excludes them rather than quietly ignoring them.

Trips between two work locations are business miles. So are trips to a client, a supplier, the bank or a job site. And if your home is your principal place of business under the home-office rules, the trip from home to a client is a business trip rather than a commute — which is one of the more valuable side effects of qualifying for a home office.

Standard rate or actual expenses — and the first-year choice

The standard rate is one figure per mile that already includes fuel, maintenance, insurance, registration and depreciation. You track miles and dates, nothing else. The actual-expense method deducts the business-use percentage of your real running costs, which can be larger for an expensive vehicle but needs complete records. You may claim one or the other, never both — deducting fuel separately on top of the standard rate is double-counting.

The first year matters more than any other. To use the standard mileage rate on a car you own, you must choose it in the first year the car is available for business use. If you claim actual expenses with depreciation in that first year, you generally cannot switch to the standard rate for that vehicle in any later year. The choice is effectively permanent, made before you know how the vehicle will actually be used.

Parking and tolls sit outside both methods and are deductible on top of either. More than one vehicle means more than one calculation: each vehicle has its own log, its own business-use percentage and its own method election, so run this tool once per vehicle rather than pooling the miles.

The written mileage log

The deduction has to be substantiated by a contemporaneous record showing, for each trip, the date, the destination, the business purpose and the miles. In 2026 the date does double duty: it also decides which of the two rates applies. Records reconstructed after the fact are routinely disallowed on examination.

What this tool does not do
  • Apply the § 280F depreciation limits on passenger vehicles, or the lease inclusion amount on a leased one.
  • Track the basis reduction that using the standard rate causes, which affects gain on sale.
  • Decide whether you are eligible for the deduction — only what the published rates produce for the miles you enter.
  • Handle a vehicle used by more than one business, or partly by an employer who reimburses you.
  • Most W-2 employees cannot deduct unreimbursed mileage at all; narrow exceptions remain for qualified performing artists, certain government officials and Armed Forces reservists.
Sources & verification

Read the editorial methodology for how TaxSaveIQ sources and reviews these figures.

Mileage deduction FAQ

What is the 2026 IRS standard mileage rate?

2026 has two rates. The optional standard rate for business miles is 72.5¢ per mile for miles driven January 1 through June 30, 2026, and 76¢ per mile for miles driven July 1 through December 31, 2026, because the IRS revised the rates effective July 1, 2026. The date you drove the miles decides which rate applies, so this calculator asks for your miles in each period separately and adds the two deductions together.

Which rate applies if I drove all year?

Both. Split your log at June 30. Miles driven January 1 through June 30, 2026 are multiplied by 72.5¢ and miles driven July 1 through December 31, 2026 are multiplied by 76¢; the two amounts are added to give your deduction. For example, 1,000 business miles in the first half is $725 and 1,000 in the second half is $760, for a combined deduction of $1,485. Applying a single full-year rate to all of your miles gives the wrong answer.

Did the medical, moving, and charitable rates change too?

The medical and qualified moving rates both rose from 20.5¢ to 23.5¢ per mile on July 1, 2026. The charitable rate is set by statute and is not adjusted for inflation, so it stays at 14¢ per mile for the whole of 2026. The moving rate is not generally available: the moving-expense deduction is suspended for most taxpayers and generally remains only for active-duty members of the Armed Forces moving under a military order incident to a permanent change of station.

Is commuting deductible?

No. Driving between your home and your regular place of work is personal commuting and is never deductible. Only business miles — driving to clients, job sites, or between work locations — count toward the deduction.

Standard mileage or actual expenses — which should I use?

The standard mileage method is simpler and often larger for fuel-efficient cars. The actual-expense method deducts your business-use percentage of real costs (gas, insurance, repairs, depreciation) and can win for expensive vehicles. The two methods have separate requirements: to use the standard rate on a car you own you must choose it in the first year the car is available for business use, and once you claim depreciation under the actual-expense method, switching back is restricted. This tool estimates both so you can compare.

Do I need a mileage log?

Yes. The IRS requires a contemporaneous record showing the date, destination, business purpose, and miles for each trip. In 2026 the date matters twice over, because it also determines which rate applies to that trip. A mileage-tracking app or a logbook kept throughout the year is the safest way to support your deduction.

💼 Self-Employment Tax Calculator →
Enter this deduction as a business expense to see it cut SE tax as well as income tax.
🏠 Home Office Deduction →
A qualifying home office turns trips to clients from commuting into business miles.

Educational estimate only — not tax advice. See IRS Publication 463 and confirm with a tax professional.