If you drive your own car for business, the standard mileage rate is the simplest way to deduct it: one rate per mile covers fuel, maintenance, insurance and depreciation. 2026 is unusual. The IRS raised the rate in the middle of the year because of fuel prices, so miles driven from July are worth more than miles driven before. This calculator applies both rates and adds parking and tolls.
Figures checked by Muhammad Ahmad against IRS: Standard mileage rates, IRS: 2026 rate announcement (IR-2025-128) and IRS Publication 463. Prices and rules change, so confirm with the official source before relying on them. How we check the math
How it works
Miles driven from 1 January to 30 June 2026 use 72.5 cents a mile (IRS Notice 2026-10). Miles from 1 July to 31 December use 76 cents a mile (IRS Announcement 2026-11).
Business parking fees and tolls are deductible on top of the mileage rate. Commuting between home and a regular workplace isn't business mileage.
The tax saved is an estimate: the deduction × your top federal income tax rate, plus, if you're self-employed, the self-employment tax it avoids (15.3% on 92.35% of the deduction, below the Social Security wage base). State tax savings come on top.
Instead of the standard rate, you can deduct actual vehicle costs. If you want to use the standard rate for a car you own, you generally need to choose it in the first year you use the car for business.
A worked example
4,000 business miles in the first half of 2026 and 4,000 in the second, plus $200 of parking and tolls: 4,000 × $0.725 = $2,900 and 4,000 × $0.76 = $3,040, so the deduction is $6,140. For a self-employed person in the 22% bracket, that saves about $1,351 of income tax and $868 of self-employment tax, roughly $2,218 in all.
Questions people ask
What is the IRS mileage rate for 2026?
72.5 cents a mile for business miles from January to June 2026, and 76 cents a mile from 1 July 2026 after the IRS's mid-year increase.
Why are there two mileage rates in 2026?
The IRS raised the rate from 1 July 2026 (Announcement 2026-11) to reflect a sharp rise in fuel prices. Log miles by date so each half uses the right rate.
What records do I need for the mileage deduction?
A log of each business trip: date, destination, business purpose and miles, kept at or near the time. Also record your total miles for the year.
Can I deduct mileage for commuting?
No. Driving between home and your regular place of work is commuting. Trips from a qualifying home office to clients usually count as business.
Is the standard rate or actual expenses better?
The standard rate is simpler and often better for fuel-efficient cars driven many miles. Actual expenses can be larger for expensive vehicles with high depreciation or running costs.