Mileage Deduction Rate Calculator

Frequently asked questions

What is the mileage deduction rate for 2026?

2026 has two rates: $0.725 per business mile for January 1 – June 30, and $0.76 per mile from July 1 onward (IRS Announcement 2026-11). The rate is meant to approximate the average cost of operating a vehicle, including fuel, maintenance, insurance, tires and depreciation.

Is the rate different for medical, moving or charitable driving?

Yes. Those categories use much lower rates and are claimed in different places on the return. Only the business rate applies to gig, freelance and contractor driving reported on Schedule C.

Does the rate change mid-year?

Usually not. The IRS occasionally issues a mid-year adjustment when fuel prices move sharply, in which case you apply each rate to the miles driven during its own period and add the two results.

Is the standard rate always better than actual expenses?

Not always. Standard mileage tends to win for high-mileage drivers in inexpensive, fuel-efficient cars. Actual expenses can win for an expensive vehicle, a heavy lease payment, or low annual mileage with high repair costs.

Can I change methods next year?

If you used standard mileage in the first year a vehicle was in service, you can switch between methods in later years. If you claimed actual expenses with accelerated depreciation first, you are locked out of standard mileage for that vehicle.

What is each business mile worth in real tax?

For a typical gig worker in the 12% bracket with 15.3% self-employment tax, one mile removes roughly 17 to 19 cents of tax. Ten thousand logged miles is commonly worth $1,700 to $1,900.