Mileage Deduction Calculator (2026)
Work out your 2026 business mileage deduction with the IRS rates of 72.5¢ a mile (January–June) and 76¢ a mile (July–December), and see roughly how much tax it saves a freelancer or gig driver.
Your 2026 mileage deduction
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Estimated tax saved: —
The standard rate replaces actual car costs (gas, repairs, insurance, depreciation). Savings are an estimate at your marginal rates.
How we calculate
- Mileage deduction = (Jan 1 – Jun 30 business miles × $0.725) + (Jul 1 – Dec 31 business miles × $0.76) + business parking and tolls. Rates are the IRS 2026 standard mileage rates for business use.
- Self-employment tax saved ≈ deduction × 92.35% × 15.3% (assumes your net earnings stay under the $184,500 Social Security wage base).
- Federal income tax saved ≈ (deduction − half of the SE tax saved) × your bracket, × 80% if you take the 20% QBI deduction.
- State tax saved ≈ the same base × your state rate (a rough approximation; states differ).
- W-2 employees: unreimbursed employee mileage generally isn’t deductible on the federal return, so savings show as $0.
Before you rely on this
Not tax, legal, or financial advice. You need a contemporaneous mileage log (date, miles, business purpose). Commuting miles aren’t deductible. If you’ve used actual expenses or certain depreciation methods on a car, you may not be able to switch to the standard rate. Confirm with IRS Publication 463 or a qualified professional.
Official sources & tax year
Frequently asked questions
What is the IRS mileage rate for 2026?
For business driving, 72.5 cents per mile from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31, 2026, after the IRS’s midyear increase.
How much is 10,000 business miles worth in 2026?
If they’re split evenly across the year, 5,000 × $0.725 + 5,000 × $0.76 = $7,425. For a self-employed person in the 12% bracket, that saves roughly $1,700 in federal tax, mostly self-employment tax.
Can I deduct gas and the mileage rate?
No. The standard mileage rate replaces actual costs like gas, oil, repairs, insurance, and depreciation. Business parking and tolls can be added on top.
Can W-2 employees deduct mileage in 2026?
Generally not on the federal return. Unreimbursed employee business expenses aren’t deductible for most employees. The deduction is mainly for the self-employed, and some states differ.
What records do I need?
A log made at the time showing the date, miles, destination, and business purpose of each trip, plus total miles for the year. Apps work if they record those details.