Business Mileage Deduction Calculator
Calculate your business mileage tax deduction using the IRS standard mileage rate for 2026. Maximize your write-offs and estimate tax savings.
What Is the Business Mileage Deduction?
The business mileage deduction allows self-employed individuals, business owners, and employees to deduct vehicle expenses related to business use. Instead of tracking every gas receipt and maintenance cost, the IRS allows you to use a standard mileage rate that covers all vehicle-related expenses in one simple per-mile amount.
For 2026, the IRS standard mileage rate is $0.67 per mile for business use of a vehicle. This rate is adjusted annually to account for changes in fuel costs, vehicle depreciation, insurance, and maintenance expenses.
What Qualifies as Business Mileage?
Business mileage includes driving for business purposes such as:
- Client meetings: Driving to meet with customers, clients, or business partners
- Business errands: Bank deposits, post office trips, supply pickups
- Between work locations: Traveling between job sites or offices
- Temporary work sites: Driving to locations outside your regular workplace
- Business events: Conferences, seminars, training sessions
- Delivery/service calls: Driving to deliver products or provide services
What Does NOT Qualify?
The following types of driving are NOT deductible as business mileage:
- Commuting: Regular trips from home to your primary workplace
- Personal errands: Grocery shopping, personal appointments, leisure driving
- Moving expenses: Relocating to a new home (unless active military)
- Carpooling: Driving coworkers to work
How to Track Business Mileage
To claim the business mileage deduction, you must keep accurate records of your business driving. The IRS requires documentation including:
Required Mileage Log Information:
- Date of each trip
- Starting location and destination
- Business purpose of the trip
- Odometer reading at start and end (or total miles driven)
- Total business miles for the year
Best Ways to Track Mileage
- Mobile apps: MileIQ, Everlance, Stride automatically track trips using GPS
- Spreadsheet: Manual log with date, destination, miles, and purpose
- Paper mileage log: Traditional logbook kept in your vehicle
- Accounting software: QuickBooks Self-Employed, FreshBooks with mileage tracking
Standard Mileage Rate vs. Actual Expenses
The IRS gives you two options for deducting vehicle expenses:
| Method | How It Works | Best For |
|---|---|---|
| Standard Mileage Rate | Multiply business miles by IRS rate ($0.67/mile for 2026) | Simpler record-keeping, newer/fuel-efficient vehicles |
| Actual Expenses | Track all vehicle costs (gas, maintenance, insurance, depreciation) × business use % | Expensive vehicles, high maintenance costs, older cars |
Note: If you use the standard mileage rate in the first year you use a vehicle for business, you can switch to actual expenses in later years. However, if you use actual expenses first, you're locked into that method for the life of that vehicle.
IRS Standard Mileage Rates by Year
| Tax Year | Business Rate (per mile) | Medical/Moving Rate | Charitable Rate |
|---|---|---|---|
| 2026 | $0.67 | $0.21 | $0.14 |
| 2025 | $0.70 | $0.21 | $0.14 |
| 2024 | $0.67 | $0.21 | $0.14 |
| 2023 | $0.655 | $0.22 | $0.14 |
| 2022 | $0.625 (Jan-Jun) $0.655 (Jul-Dec) |
$0.18 (Jan-Jun) $0.22 (Jul-Dec) |
$0.14 |
Tax Savings from Business Mileage
The business mileage deduction reduces your taxable income, which in turn reduces your tax liability. The actual tax savings depend on your tax bracket and employment status.
Example Tax Savings Calculation
Scenario: Self-employed consultant drives 15,000 business miles per year
- Business miles: 15,000
- Standard mileage rate: $0.67/mile
- Mileage deduction: 15,000 × $0.67 = $10,050
- Tax bracket: 24% federal
- Self-employment tax: 15.3%
- Total tax savings: $10,050 × (24% + 15.3%) = $3,950
Who Can Deduct Business Mileage?
The business mileage deduction is available to:
- Self-employed individuals: Freelancers, consultants, contractors (Schedule C)
- Small business owners: Sole proprietors, LLC members, S-corp owners
- Gig workers: Uber/Lyft drivers, DoorDash, Instacart shoppers
- Armed forces reservists: Traveling more than 100 miles from home
- Qualifying performing artists: Meeting specific IRS requirements
- Fee-basis state/local government officials
Important: As of 2018, W-2 employees can NO LONGER deduct unreimbursed employee expenses (including mileage) due to the Tax Cuts and Jobs Act. This deduction is suspended through 2025. If you're a W-2 employee, ask your employer about mileage reimbursement programs instead.
How to Claim the Mileage Deduction
The form you use depends on your business structure:
- Self-employed/sole proprietor: Schedule C (Form 1040), Line 9 "Car and truck expenses"
- Partnership: Form 1065, Schedule K-1
- S Corporation: Form 1120-S
- Farmers: Schedule F (Form 1040)
Common Mistakes to Avoid
- Not keeping records: The IRS can disallow your entire deduction without proper documentation
- Rounding up miles: Use actual odometer readings, not estimates
- Deducting commuting: Home to regular workplace is never deductible
- Using the wrong rate: Make sure you're using the current year's IRS rate
- Mixing methods: You can't use standard mileage for some trips and actual expenses for others in the same tax year
- Forgetting the home office exception: If you have a qualified home office, trips FROM home to business locations ARE deductible
Maximizing Your Mileage Deduction
Strategies to increase your legitimate business mileage deduction:
- Establish a home office: Makes trips from home to clients/job sites fully deductible
- Combine errands: Plan efficient routes to maximize business miles
- Track every trip: Use automatic tracking apps so you never miss a deductible mile
- Document purpose: Take photos, save meeting confirmations, keep receipts as supporting evidence
- Start tracking January 1: Don't wait until tax time to begin logging miles
Frequently Asked Questions
Can I deduct mileage if I work from home?
Yes! If you have a qualified home office, trips from your home to business locations (clients, suppliers, meetings) are fully deductible. Your commute becomes $0 because your primary workplace IS your home.
What if I use my car for both business and personal use?
You can only deduct the business portion. Track total miles driven and business miles separately. Only the business percentage is deductible.
Can I deduct mileage for a leased vehicle?
Yes. The standard mileage rate includes depreciation, so it works for both owned and leased vehicles.
What if I forgot to track mileage during the year?
You can reconstruct your mileage log using calendars, receipts, emails, and bank statements. The IRS accepts reasonable reconstructions, but contemporaneous records are always better.
Can I claim mileage for multiple vehicles?
Yes. If you use multiple vehicles for business, track mileage separately for each and claim the deduction for both.