Last updated ·Published ·By the WiserWork team
IRS Mileage Deduction Calculator
Business miles into deductions at the current IRS rate — plus the log the IRS expects
Short answer: 2026 has two business mileage rates, not one. Miles driven from 1 January to 30 June deduct at 72.5¢; miles driven from 1 July to 31 December deduct at 76¢. Medical and military-moving miles split the same way, 20.5¢ then 23.5¢. The charitable rate is fixed by statute at 14¢ and does not change mid-year. You must log the miles by period, not just by year.
Worked example: Using this page’s defaults — 3,250 business miles in each half of the year — the deduction is 3,250 × $0.725 = $2,356.25 plus 3,250 × $0.76 = $2,470, or $4,826 on 6,500 miles. Applying a single rate to all 6,500 miles would give $4,713 or $4,940, misstating the deduction by $114 in one direction or the other.
Source: IRS Standard mileage rates. Notice 2026-10 set the January rates and Announcement 2026-11 revised them from 1 July — the first mid-year revision since 2022.
| Category | 2026 rate | Miles | Deduction |
|---|
Mileage is the most valuable deduction that evaporates for lack of a log: at the 2026 rates of 72.5¢ per business mile to 30 June and 76¢ from 1 July, a modest 6,500 miles split evenly across the change is a $4,826 deduction — worth ~$1,600 of actual tax to a self-employed 22%-bracket filer, because business miles cut SE tax too. This calculator converts your miles into deduction and real-tax-saved figures across all three IRS categories, and covers the two rules that decide audits: what counts as a business mile, and what a log must contain.
The 2026 Rates
| Category | Rate | Who uses it |
|---|---|---|
| Business | 72.5¢ Jan–Jun · 76¢ Jul–Dec | Self-employed on Schedule C; rental-property owners on Schedule E |
| Medical (and military moving) | 20.5¢ Jan–Jun · 23.5¢ Jul–Dec | Itemizers above the 7.5%-of-AGI medical floor |
| Charity | $0.14/mile (set by statute, unchanged for decades) | Itemizers doing volunteer driving |
What Counts as a Business Mile
- Deductible: office/home-office to client sites, between work locations, supply runs, bank/post-office trips, business meetings, airport trips for business travel, rental-property visits.
- Never deductible: commuting between home and a regular workplace — the most tested rule in vehicle deductions.
- The home-office multiplier: with a qualifying home office as your principal place of business, there is no "commute" — every trip from home to any business destination is deductible. For mobile freelancers this single interaction is often worth $1,000+/yr.
- Gig drivers: miles with a passenger/delivery AND the miles between rides while active count; the app's summary usually understates — a dedicated tracker captures 20–40% more.
Standard Rate vs Actual Expenses
The standard rate replaces everything — gas, insurance, repairs, depreciation. The alternative deducts actual costs × business-use percentage. Rules of thumb: standard wins for efficient cars and high mileage; actual can win for expensive, heavy or low-MPG vehicles driven mostly for business. Two constraints: choose standard in the vehicle's first business year to keep both options open, and never claim gas on top of the standard rate (the classic double-dip error).
The Log: Your Deduction's Life Insurance
The IRS requires contemporaneous records: date, destination, business purpose, and miles for each trip, plus the year's starting/ending odometer. In practice: a mileage app (automatic trip detection, $0–60/yr — deductible itself, and it pays for itself 50× over) or a glovebox notebook. Reconstructed logs after an audit letter fail; apps make the whole issue disappear for approximately zero effort.
How to Use the Calculator
- Enter miles by category (your app's year-end report, or an honest estimate to see the stakes).
- Set your bracket and self-employment status — SE status nearly doubles the per-mile value.
- Read the deduction, the actual tax saved, and your personal per-mile value — the number that turns 'is this trip worth logging?' into 'yes.'
Frequently Asked Questions
Can W-2 employees deduct work mileage?
Not currently — unreimbursed employee expenses are suspended through at least 2025's framework. Ask your employer for reimbursement at the IRS rate (tax-free to you). Self-employed and gig income qualifies fully.
Do I need the odometer reading for every trip?
Per-trip miles (app-tracked or noted) plus the year's start/end odometer readings satisfy the rule. The four elements per trip: date, destination, purpose, miles. Apps capture all four automatically.
What about parking and tolls?
Deductible ON TOP of the standard mileage rate — the rate covers vehicle costs, not fees. Keep those receipts separately; they're commonly forgotten free money.
I drive for DoorDash/Uber — which miles count?
From going online to going offline in your work area: pickup drives, delivery/passenger miles, and repositioning between gigs. Personal detours don't. Cross-check the app's summary against a dedicated tracker — platforms systematically undercount dead miles.
Standard rate or actual expenses for my car?
Standard for most: simpler, and generous for efficient vehicles. Actual (gas, insurance, depreciation, repairs × business %) can beat it for trucks, luxury or low-MPG vehicles with high business use. First-year choice matters — standard first preserves flexibility.
How is the IRS rate set?
Normally once a year, from national vehicle-cost studies (fuel, depreciation, insurance, maintenance) — but the IRS can revise mid-year, and did for 2026: business went from 72.5¢ to 76¢ on 1 July after fuel prices rose. It's a safe-harbor average: efficient-car drivers profit from it, gas-guzzler drivers may prefer actual costs.
Is my information private?
Yes — all figures compute locally in your browser.
Install a mileage app today and this becomes the easiest four-figure deduction you'll ever claim — automatic, audit-proof, and paying your bracket-plus-SE rate on every logged mile. The deduction was always yours; the log is what makes it real.