What is the 2026 IRS standard mileage rate?

The IRS standard mileage rate for business use is $0.725 per mile for 2026 (IRS Notice 2026-10, IR-2025-128), up from $0.70 in 2025. Medical/moving (military only) is $0.205/mile (down from $0.21) and charity is $0.14/mile (set by statute).

Standard mileage vs actual expenses — which method is better?

It depends on your vehicle costs and miles driven. The standard rate is simpler and often wins for high-mileage drivers with fuel-efficient cars. The actual method may save more if you have high depreciation, insurance, or repair costs relative to miles. You must choose one method per tax year.

Can W-2 employees deduct mileage on their taxes?

Generally no. The Tax Cuts and Jobs Act (TCJA) suspended the deduction for unreimbursed employee expenses, including mileage, through at least 2025. Self-employed individuals, independent contractors, and gig workers can still deduct mileage on Schedule C.

IRS Mileage Reimbursement Calculator

Q: What qualifies as business miles for the IRS mileage deduction?

Business miles include trips from your office or home office to clients, meetings, job sites, the bank, post office, or supply stores. Commuting from home to a regular office does NOT qualify. If you work from a home office, trips from home to any business destination are deductible.

Q: How do I keep a mileage log for the IRS?

The IRS requires a contemporaneous log recording each business trip with date, destination, business purpose, and miles driven. Use apps like MileIQ, Everlance, or Driversnote for GPS-based tracking. Without a log, your entire mileage deduction can be disallowed in an audit.

Calculate your business mileage deduction using the IRS standard rate. Compare standard vs actual expenses, project annual tax savings, and get tips for keeping a compliant mileage log.

Calculate your IRS standard mileage deduction and estimated tax savings

Total business miles

Annual miles driven for business purposes

IRS standard rate

$/mile

2026: $0.725/mile (IRS Notice 2026-10)

Self-employed?

W-2 employees cannot deduct mileage (TCJA)

Filing status

Marginal tax bracket

Gross income

State income tax rate

CA: 9.3%, NY: 6.85%, TX/FL: 0%

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How to Use This Calculator

Mileage Deduction tab

The default tab. Enter your total business miles for the year and confirm the IRS standard rate ($0.725/mile for 2026, IRS Notice 2026-10). The calculator shows your total deduction and estimated tax savings at your marginal federal rate, state rate, and self-employment tax rate if applicable. Expand "More options" to adjust filing status, tax bracket, and state rate.

Standard vs Actual tab

Enter your annual vehicle expenses — gas, insurance, depreciation, maintenance, registration, and parking/tolls. The calculator compares the standard mileage method against the actual expense method and tells you which one saves more. Adjust the business use percentage to reflect your split between business and personal driving.

Mileage Log tab

Project your annual mileage deduction from weekly driving habits. Enter miles per week and weeks worked to see your estimated annual deduction and monthly tax savings. Includes IRS documentation tips — you need a contemporaneous mileage log to claim the deduction.

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The Formula

The IRS offers two methods for deducting vehicle expenses for business use:

Standard Mileage Deduction = Business Miles × IRS Standard Rate

Actual Expense Deduction = Total Vehicle Expenses × Business Use %

Tax Savings = Deduction × (Federal Marginal Rate + State Rate)
+ SE Tax Savings (if self-employed) = Deduction × 15.3% × 50%

The standard mileage rate is simpler — you only need to track miles. The actual expense method requires keeping all vehicle receipts but may yield a larger deduction if your vehicle costs are high relative to miles driven.

Self-employed individuals (Schedule C filers) get an additional benefit: the mileage deduction reduces self-employment tax (15.3%) in addition to income tax. W-2 employees generally cannot deduct mileage since the TCJA suspended unreimbursed employee expense deductions through 2025.

Example

David — Real Estate Agent, Sacramento CA

David is a self-employed real estate agent earning $110,000. He drives a 2022 Honda CR-V for 18,000 business miles per year. California state tax rate: 9.3%. He files as Single.

Standard Mileage Method

Business miles18,000

IRS rate (2026)$0.725/mile

Standard deduction$13,050

Federal savings (24%)$3,132

State savings (9.3%)$1,214

SE tax savings$998

Total tax savings$5,344

Actual Expense Method

Gas$3,600

Insurance$2,100

Depreciation$3,200

Maintenance$800

Registration + parking$700

Total expenses$10,400

Business use (85%)$8,840

The standard mileage method wins by $4,210 ($13,050 vs $8,840). David should use the standard rate — it's simpler and saves more. His $13,050 deduction translates to $5,344 in total tax savings across federal, state, and self-employment taxes.

FAQ

What qualifies as business miles? ▼

Business miles include trips from your office (or home office) to clients, meetings, job sites, the bank, post office, or supply stores. Commuting from home to a regular office does NOT qualify. If you work from a home office, trips from home to any business destination are deductible. Travel between two work locations during the day also counts.

Standard mileage vs actual expenses — which is better? ▼

It depends on your vehicle costs and miles driven. The standard rate ($0.725/mile for 2026) is simpler and often wins for high-mileage drivers with fuel-efficient cars. The actual method may win if you have an expensive vehicle with high depreciation, insurance, or repair costs relative to miles. Use the "Standard vs Actual" tab to compare for your exact situation.

How do I keep a mileage log for the IRS? ▼

The IRS requires a "contemporaneous" log — meaning you record trips at or near the time of travel. For each trip, record: date, destination, business purpose, and miles driven (or odometer start/end). Apps like MileIQ, Everlance, or Driversnote automate this with GPS tracking. A paper logbook also works. Without a log, your entire mileage deduction can be disallowed in an audit.

Can W-2 employees deduct mileage? ▼

Generally no. The Tax Cuts and Jobs Act (TCJA) of 2017 suspended the deduction for unreimbursed employee expenses, including mileage, through at least 2025. If your employer reimburses you at the IRS rate, that reimbursement is tax-free under an accountable plan. Armed forces reservists, qualified performing artists, and fee-basis state/local government officials are exceptions and can still deduct on Form 2106.

What about self-employed mileage deductions? ▼

Self-employed individuals (sole proprietors, independent contractors, gig workers) deduct business mileage on Schedule C. This reduces both income tax and self-employment tax (15.3%). You can deduct the full 50% employer-equivalent of SE tax. The mileage deduction is one of the largest tax savings available to self-employed workers — a driver doing 15,000 business miles saves over $10,000 in deductions.

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