Mileage Deduction Calculator United States

What the mileage deduction calculator does

The calculator estimates the deduction for driving your own vehicle for business using the IRS standard mileage rate. Enter your business miles and it multiplies them by the current per-mile rate. Add your marginal tax rate to see roughly what the deduction is worth in tax saved.

For the self-employed, small business owners and independent contractors who drive for work, mileage is often one of the largest deductions and one of the most often missed. The standard rate is meant to cover the whole cost of running a vehicle, so even a modest number of business miles can reduce taxable income noticeably over a year. Employees generally cannot deduct unreimbursed business mileage on their federal return.

How the standard mileage method works

The IRS lets most drivers choose between the standard mileage rate and the actual expense method. This calculator uses the standard rate, the simpler of the two.

You keep a log of business miles and multiply the yearly total by the published rate. The rate covers fuel, oil, routine maintenance, tires, insurance, registration and depreciation, so you do not need receipts for each expense, only a reliable record of the miles.

• It takes the business miles you drove during the year.
• It multiplies them by the current standard mileage rate for your deduction.
• It applies your marginal tax rate to estimate the tax saving.

The deduction reduces taxable income and is not a credit, so its cash value depends on your bracket. The same deduction saves more for someone in a higher bracket.

Which miles qualify

Trips that generally qualify include driving between work locations, visiting clients or customers, traveling to temporary work sites and business errands such as buying supplies or going to the bank for the business.

Ordinary commuting between your home and a regular place of work is personal, however far it is. If a qualifying home office is your principal place of business, trips from it to other work locations can count as business miles.

Keep a mileage log with the date, starting point and destination, business purpose and miles for each trip. A log kept at or near the time of each trip is far more credible than numbers reconstructed at year end and supports the deduction if it is questioned.

Standard rate versus actual expenses

The standard rate is simple but not always the larger deduction. The actual expense method adds up everything you spend on the vehicle during the year, such as fuel, repairs, insurance and lease payments or depreciation, and multiplies the total by your business-use percentage.

An expensive vehicle, high repair bills or heavy fuel use can make the actual method worth more. An efficient, low-cost car driven many business miles often does better with the standard rate. There are rules about switching methods once you have chosen one for a vehicle, so understand both before deciding.

Reading your result

The output shows your mileage deduction, the estimated tax saving at your marginal rate, the per-mile rate applied and the deduction remaining after that tax saving. The deduction and the tax it saves are different numbers: the deduction lowers taxable income, and your bracket determines how much tax that removes.

Business tolls and parking can be added on top of the mileage figure. Personal and commuting miles must be left out.

When to use this tool

• Estimate your business mileage deduction before filing.
• See the after-tax value of the miles you track.
• Decide whether the standard mileage method suits you.
• Budget for the tax benefit of business driving.

The standard rate is updated each year, so recalculate when it changes or when your driving changes. If your vehicle costs are high, it may be worth working out the actual expense method as well.

This is general information only and not financial or tax advice.

About This Mileage Deduction Calculator

Use this mileage deduction calculator to get an instant, accurate estimate. The figures follow official IRS guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.