2026 tax year · US · Updated June 11, 2026

Mileage Deduction Calculator

Business driving is usually the biggest deduction a gig worker has, and most people underestimate it. Enter your business miles and this calculator applies the 2026 IRS standard rate, adds parking and tolls, and shows the tax you actually save.

Your numbers

Miles driven for work, from your mileage log. Commuting miles do not count.
$
Deductible on top of the per-mile rate. 0 if none.
Pick your marginal bracket to estimate the actual tax saved by the deduction.

Your 2026 deduction

Mileage deductionBusiness miles × the 2026 IRS rate of 72.5 cents per mile
$7,250
Total deductionMileage plus parking and tolls
$7,250
The standard rate already covers gas, maintenance, insurance, and depreciation, so you cannot deduct those costs again on top of it. Business parking fees and tolls are the exception: they are deductible in addition to the per-mile rate. Commuting miles never count, no matter how far you drive.

How the mileage deduction works

Every business mile you drive in 2026 is worth 72.5 cents as a deduction against your self-employment profit. Instead of saving every gas receipt and repair bill, the IRS lets you multiply your business miles by one flat rate. Drive 8,000 business miles and the math is 8,000 × $0.725 = $5,800 off your taxable profit. For a typical rideshare or delivery driver, that single line item often beats every other deduction combined.

The standard rate is a stand-in for the real costs of running the car: gas, oil, maintenance, insurance, registration, and depreciation. The alternative is the actual expense method, deducting the business-use share of what the car truly cost you. Actual expenses can win for newer or pricier vehicles, but it demands every receipt plus a depreciation calculation, and there’s a catch: to keep the standard rate as an option for a car you own, you must choose it in the first year you use that car for business.

None of it survives an audit without records. The IRS expects a contemporaneous log showing the date, miles, destination, and business purpose of each trip. A tracking app or a weekly spreadsheet works; a year-end reconstruction doesn’t. Our mileage log guide covers exactly what to record and which shortcuts the IRS accepts.

Mileage is one piece of the picture. To see what you actually keep after platform fees, vehicle costs, and taxes, run your numbers through the gig earnings calculator.

These are estimates, not tax advice. The savings figure is an approximation that combines self-employment tax with your selected marginal bracket; it does not model bracket boundaries crossed mid-deduction or state income tax, which would add to the savings in most states.

Where these numbers come from

The deduction is business miles multiplied by the IRS standard mileage rate, plus parking and tolls. The savings estimate applies the effective SE-tax rate plus your selected marginal bracket. Every figure is transcribed from these sources:

Constants last verified against these sources on June 11, 2026. Every value is also pinned by an automated test suite that fails if a rate in the calculator drifts from the figure we transcribed from the source.

Frequently asked questions

What does the 72.5-cent standard mileage rate cover?
The rate is the IRS's all-in estimate of what it costs to run a car for a mile: gas, oil, maintenance, repairs, tires, insurance, registration, and depreciation. Because all of that is baked into the per-mile figure, you cannot deduct those costs again separately. The only vehicle costs that stack on top are business parking fees, tolls, and the business share of car loan interest and personal property tax.
Should I use the standard mileage rate or actual expenses?
The standard rate wins on simplicity: one log, one multiplication. Actual expenses (the business-use share of everything the car really cost) can produce a bigger deduction for newer or more expensive vehicles, but it requires every receipt plus a depreciation calculation. One rule matters up front: to keep the option of using the standard rate on a car you own, you must choose it in the first year the car is available for business use. Pick actual expenses in year one and the standard rate is off the table for that car in later years.
What records does the IRS require for a mileage deduction?
For each business trip: the date, the miles driven, the destination, and the business purpose. IRS Publication 463 also expects the record to be contemporaneous, meaning written at or near the time of the trip, not reconstructed from memory in April. A mileage-tracking app, a spreadsheet updated weekly, or a paper logbook in the glovebox all qualify; a year-end guess does not.
Which miles count as business miles for gig drivers?
The drive from home to where you start working is commuting, and commuting is never deductible, even if you turn the app on in the driveway. Once you are actively working, the picture changes: miles driven between pickups, miles to a passenger or order, and miles repositioning to a busier area while online generally count. Keep your log honest about the split, because the IRS looks hard at drivers who claim every mile the car moved.
Can I deduct parking and tolls on top of the mileage rate?
Yes. Business parking fees and tolls are not part of the standard mileage rate, so they are deductible in addition to it. Note the word business: parking at your own workplace or home is a commuting cost and does not count. Keep receipts or toll statements, since these are separate line items from the per-mile figure.
Can W-2 employees deduct mileage?
No. Unreimbursed employee expenses, including work mileage, are not deductible on a federal return for regular W-2 employees. The mileage deduction here applies to self-employment income: gig work, freelancing, and side businesses reported on Schedule C. If you drive for an employer, ask about a reimbursement plan instead, since employer reimbursements at the standard rate are tax-free to you.
How does the tax savings estimate work?
A deduction does not put its face value back in your pocket; it reduces the income you are taxed on. For self-employment income, every deducted dollar avoids both self-employment tax and federal income tax at your marginal bracket, so the estimate multiplies your total deduction by the effective SE rate plus the bracket you selected. It is an approximation: it ignores bracket boundaries crossed mid-deduction and the way the half-SE-tax deduction shifts alongside, but it lands close for most filers.
Where does the mileage deduction go on my tax return?
On Schedule C, under car and truck expenses, as part of your business expenses. The deduction reduces your net self-employment profit, which in turn reduces both your self-employment tax and your income tax. You report total business miles for the year and answer a few questions about the vehicle and your records, which is another reason the log matters.

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