Mileage Deduction Calculator
Turn your business miles into a deduction at the current IRS standard rate — and see what it saves you in tax.
Written by Dorothy Ibrahim, 10+ years in banking & finance
Reviewed by Benton Jona, EA (Enrolled Agent) — 2026-07-13
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How we calculate this
This calculator turns your business miles into a deduction at the current IRS standard mileage rate and shows what it saves you in tax. The standard rate bundles gas, maintenance, insurance, and depreciation into one per-mile figure and needs only a mileage log. Because a sole proprietor’s profit is taxed by both income tax and the 15.3% self-employment tax, a mileage deduction reduces both, so the tool values it at your combined marginal rate rather than income tax alone.
The formulas
- Mileage deduction
- business miles × the IRS standard mileage rate for the year$0.725/mi for 2026 (Notice 2026-10); $0.70/mi for 2025.
- Combined marginal saving rate
- your income-tax marginal rate + (15.3% × 92.35%) self-employment marginal
- Tax saved
- mileage deduction × combined marginal saving rate
Worked example
- With the defaults — 10,000 business miles, tax year 2026 — the deduction is 10,000 × $0.725 = $7,250.
- The combined marginal saving rate at a 22% top income bracket is 22% + 14.13% self-employment marginal (15.3% × 92.35%) = about 36.1%.
- Tax saved = $7,250 × 36.1% ≈ $2,619.
- That is real money for miles you were already driving — but only if you keep a contemporaneous log of the date, miles, and business purpose of each trip to back it up on audit.
Rates, benchmarks & sources
- 2026 standard business mileage rate = $0.725/mi (published December 29, 2025). — IRS Notice 2026-10
- Travel, Gift, and Car Expenses — standard mileage vs. actual expenses, and recordkeeping. — IRS Publication 463
- Self-employment tax: 15.3% on 92.35% of net profit (the SE-tax marginal). — IRS Schedule SE (Form 1040)
- Car and truck expenses reported by a sole proprietor. — IRS Schedule C (Form 1040)
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- It uses the standard-mileage method only; you cannot also claim actual vehicle expenses (gas, repairs, insurance, depreciation) for the same miles, so compare both before choosing.
- It assumes a valid, contemporaneous mileage log and that the miles entered are genuinely deductible business miles — your regular commute from home to a main workplace does not count.
- It applies the income-tax marginal rate you enter plus the full SE-tax marginal; it does not check your actual bracket, other income, or the Social Security wage-base cap on SE tax.
- It is an educational estimate for planning, not tax advice, and does not replace a return prepared or reviewed by a CPA/EA.
Frequently asked questions
What is the 2026 standard mileage rate?
The IRS standard business mileage rate for 2026 is $0.725 per mile (Notice 2026-10, published December 29, 2025). Multiply your business miles by this rate to get your deduction under the standard-mileage method. For 2025 the rate was $0.70 per mile.
Standard mileage vs. actual expenses — which should I use?
The standard mileage rate bundles gas, maintenance, insurance, and depreciation into one per-mile figure and needs only a mileage log. The actual-expense method deducts your real vehicle costs times business-use percentage. You generally must choose the standard rate in the first year you use a car for business if you want the option to switch methods later, so decide early.
What counts as a deductible business mile?
Driving between work locations, to clients or job sites, and for business errands. Your regular commute from home to a main workplace is not deductible. If you have a qualifying home office, trips from there to other business locations can count, which is one quiet advantage of the home-office setup.
What records do I need for mileage?
A contemporaneous log showing the date, miles driven, and business purpose of each trip, plus your total annual mileage. Apps that track trips by GPS satisfy this; a number reconstructed from memory months later is exactly what auditors disallow, so log as you go.
Does the tax-saved figure include self-employment tax?
Yes. For a sole proprietor a business deduction reduces both federal income tax and self-employment tax, so the tool values each deducted dollar at your income-tax bracket plus the SE-tax marginal (15.3% × 92.35%). It is a federal estimate only and does not model state income tax, which varies by state.
Related calculators
Federal figures only unless noted. State taxes vary.