Online selling & marketing
IRS Mileage Deduction Calculator
Self-employed people, gig drivers and small business owners can deduct business driving using the IRS standard mileage rate. For 2026, the IRS raised the business rate mid-year, so enter miles for the first and second half of the year separately to get an accurate deduction.
How to use the IRS Mileage Deduction Calculator
- Enter business miles for January to June.
- Enter business miles for July to December.
- Add medical and charity miles if any.
- Enter your tax rate to estimate the saving.
Formula
Example
8,000 business miles split evenly: 4,000 × $0.725 + 4,000 × $0.76 = $5,940 deduction.
Keep a mileage log
- Date of each trip
- Start and end location
- Business purpose
- Miles driven (odometer or app)
What counts as business miles?
Driving to clients, between work sites, to the bank or supplier for business. Your normal commute from home to a regular workplace does not count.
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Frequently asked questions
Can employees deduct mileage?
Not on federal returns in most cases; ask your employer for reimbursement.
Standard rate or actual expenses?
You can use actual costs (gas, repairs, depreciation) instead, but you must keep receipts.
Why two business rates in 2026?
The IRS raised the rate from 72.5 to 76 cents for miles driven from July 1, 2026 because of fuel costs.
Do gig drivers qualify?
Yes - rideshare and delivery drivers can deduct business miles.
Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.
Last updated: November 2026