US mileage deduction calculator 2026
Estimate your IRS standard mileage deduction at 72.5¢/mile, compare against the actual expense method, and see the tax savings at your filing status and bracket.
Standard mileage deduction
The simplest method for self-employed drivers — multiply business miles by the IRS rate.
Business rate: 72.5¢/mile
Single
After standard deduction — used to find your marginal bracket.
Rate
72.5¢
per business mile
Mileage deduction
$7,250
10,000 × 72.5¢
Estimated tax savings
$1,595
at 22% marginal rate
Actual expense method
Add up real vehicle costs and deduct the business-use percentage. Useful for expensive cars or heavy maintenance.
Annual spend on gasoline, diesel, or EV charging
Simplified estimate — MACRS may apply in practice
Interest only — principal is not deductible
Includes business + commuting + personal
9,000 business miles/year
Total expenses
$10,500
before business-use adjustment
Actual expense deduction
$6,300
60% business-use factor
Standard method (2026)
$6,525
9,000 miles × standard rate
Standard mileage method wins by $225 this year. Remember: if you don't pick the standard rate in the first year a vehicle goes into service, you're locked out of it for that vehicle's entire life.
Self-employment tax estimator
Net SE earnings after deductions feed into the 15.3% self-employment tax (Social Security + Medicare).
Social Security wage base: $183,600
Revenue minus materials/COGS, before other expenses.
Standard mileage deduction: $7,250 at 72.5¢/mile
Office, supplies, software, phone, insurance, etc.
W-2 wages (yours) that already went toward the SS wage base — enter 0 if none.
Net SE earnings
$47,750
after $12,250 deductions
Social Security portion
$5,468
12.4% (capped at wage base)
Medicare portion
$1,279
2.9% (uncapped)
Total SE tax
$6,747
Social Security + Medicare
Deductible half
$3,373
Reduces federal income tax base
This estimate applies only to SE tax. Federal and state income tax are separate. Additional Medicare Tax of 0.9% may apply on earnings above $200k (single) / $250k (MFJ).
EV vs gas vs hybrid — running cost
Compare energy cost per mile at your state's electricity rate. Doesn't include insurance, depreciation, or maintenance.
Based on EIA average residential rate — your actual tariff may be lower (time-of-use / off-peak).
Sedans 3.5–4.5 · SUVs 2.8–3.5 · trucks 1.8–2.5
EV annual cost
$1,046
8.7¢ per mile
Hybrid annual cost
$792
6.6¢ per mile
Gas annual cost
$1,320
11.0¢ per mile
First-year method wizard
Your first-year choice is locked in for this vehicle's life. Estimate both methods before you file.
If you don't elect the standard mileage rate in the first year a vehicle is used for business, you cannot use it later for that vehicle. The actual expense method becomes your only option. This is a one-shot decision.
Your cost basis
≈ $7,000/yr straight-line
67% business use
Standard mileage
$8,700
12,000 mi × 72.5¢
Actual expense
$9,167
67% of $13,750 total
Actual expense gives $467 more this year.
Actual wins now, but if your mileage grows or the vehicle's depreciation tapers, standard could pull ahead later. Remember: if you don't elect standard in year one, you're locked out forever for this vehicle.
Other disqualifiers
- Operating 5+ vehicles simultaneously (fleet)
- Previously claimed accelerated depreciation or Section 179
- Previously claimed actual expenses on a leased vehicle (post-1997)
- Rural mail carrier receiving a qualified reimbursement
If any apply, the standard mileage rate is unavailable and you must use the actual expense method.
Log every business mile automatically
MileEZ detects drives in the background, classifies them by purpose, and builds audit-ready mileage logs. With the 2026 rate at 72.5¢, every untracked business mile is a deduction you won't get back.
See MileEZ featuresThe 2026 IRS standard mileage rate
The 2026 IRS business standard mileage rate is 72.5¢ per mile, up from 70¢ in 2025. The rate represents the IRS's estimate of the fixed and variable costs of operating a vehicle — gas, insurance, maintenance, depreciation, and more — and applies equally to gasoline, diesel, hybrid, and fully electric vehicles. The medical/moving rate is 20.5¢ (eligible military only), and the charitable rate stays at the statutory 14¢.
Standard vs actual expense method
US taxpayers can choose between two methods for deducting vehicle expenses:
- Standard mileage rate: multiply business miles by the IRS rate. Simple record-keeping — a mileage log is enough.
- Actual expense method: deduct the business-use percentage of real expenses (gas, insurance, repairs, depreciation, interest). Better for expensive vehicles or heavy maintenance.
The first-year rule is critical: if you don't elect the standard rate in the first year a vehicle is used for business, you are locked out of using it for that vehicle for the rest of its life.
Self-employment mileage and Schedule C
Self-employed drivers report mileage on Schedule C. The deduction reduces your net self-employment earnings, which in turn reduces both your federal income tax and your self-employment tax (15.3% on the first $183,600 of SS-taxable earnings in 2026, plus 2.9% Medicare on all earnings). The Additional Medicare Tax of 0.9% applies above $200,000 for single filers / $250,000 MFJ.
W-2 employees and unreimbursed expenses
The Tax Cuts and Jobs Act suspended unreimbursed employee business expenses (2018–2025), and the "One, Big, Beautiful Bill Act" made that suspension permanent for most W-2 workers. Members of the Armed Forces reserve, state/local officials paid on a fee basis, certain performing artists, and eligible educators can still claim mileage as an adjustment to income.
EV running cost vs gasoline
Electricity is cheaper per mile than gasoline almost everywhere in the US, but how much cheaper depends heavily on your state. A sedan that gets 3.5 miles per kWh costs around 4–5¢/mile to run in states with low residential rates (WA, ID, UT) and closer to 8–12¢ in higher-cost states (CA, CT, MA, HI). Compare that to a 30-MPG gasoline vehicle at $3.30/gallon — about 11¢/mile. Hybrids at 50 MPG land around 6.6¢/mile, so in the most expensive electricity states the savings can shrink. The EV still comes out ahead in almost every scenario at the current US fleet averages.
Self-employment tax and mileage deductions
The standard mileage deduction reduces your net self-employment earnings, and because SE tax is 15.3% of those earnings (up to the $183,600 Social Security wage base in 2026, then 2.9% Medicare-only above that), every deducted mile effectively saves you 15.3¢ of SE tax plus your marginal federal rate. A self-employed driver logging 12,000 business miles in 2026 at 72.5¢/mile deducts $8,700 — reducing SE tax by about $1,230 and federal income tax by several hundred dollars more depending on their bracket.
The first-year method choice is permanent
When a vehicle first enters business use, you must decide between the standard mileage rate and the actual expense method. If you pick actual in year one, you're locked out of standard for that vehicle forever. The reverse isn't true: if you pick standard, you can switch to actual later. Because of this asymmetry, most small-business drivers pick standard in year one unless actual clearly wins by a wide margin.
Track every business mile with MileEZ
At 72.5¢ per mile, every untracked business trip costs real money. MileEZ automatically detects drives, categorises trips, and generates IRS-compliant reports so nothing falls through the cracks at tax time.