Actual vs. standard mileage calculator (2026)
There are two ways to deduct a car you use for work: the IRS standard mileage rate, or your actual costs times your business-use share. Enter your miles and costs to see which is bigger for 2026.
The two methods in plain English
- Standard mileage: business miles times the IRS rate. For 2026 that’s 72.5¢ a mile from Jan. 1 to June 30 and 76¢ from July 1 to Dec. 31. Add business parking and tolls.
- Actual expenses: gas, repairs, tires, insurance, registration, and depreciation or lease payments, times your business-use percentage. Parking and tolls are added on top.
Self-employed people can also deduct the business share of car loan interest and personal property tax on the car with either method.
The first-year rule
If you own the car and want to use the standard rate at any point, you must use it in the first year the car is used for business. After that you can switch to actual expenses (with straight-line depreciation), but if you start with actual expenses you can’t move to the standard rate for that car. For a leased car, choosing the standard rate locks it in for the whole lease.
When you can’t use the standard rate
- You use 5 or more vehicles for business at the same time.
- You already took Section 179, bonus or accelerated depreciation on the car.
- You claimed actual expenses on a car you lease.
Running several vehicles? Try the small fleet cost-per-mile calculator. Buying a heavy truck or SUV? The Section 179 vehicle checker shows the 2026 caps.
Records the IRS expects
Either way, keep a mileage log written at or near the time of each trip: date, where you went, why, and the miles. Note your odometer on Jan. 1 and Dec. 31. See the mileage deduction guide for more.
Apps that keep the mileage log for you
- MileIQ: automatic trip tracking. Swipe trips as business or personal.
- Everlance: mileage and expense tracking with a free tier, popular with gig drivers.
- Paper mileage log books on Amazon if you prefer pen and paper.
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Frequently asked questions
What is the 2026 IRS mileage rate?
For business driving it is 72.5 cents a mile from Jan. 1 to June 30, 2026, and 76 cents a mile from July 1 to Dec. 31, 2026, after the IRS’s midyear increase.
Can I switch between standard mileage and actual expenses?
If you own the car and used the standard rate in its first business year, you can switch to actual expenses later. If you started with actual expenses, you can’t switch to the standard rate.
Are parking and tolls deductible with the standard rate?
Yes. Business parking fees and tolls are deductible on top of the standard mileage rate. Parking at your regular workplace is not.
Which method is usually bigger?
The standard rate often wins for efficient, lower-cost cars driven a lot. Actual expenses often win for pricier trucks and SUVs, or cars driven fewer miles with high insurance and repairs.
Sources (Checked November 2026)
Educational only. This is not tax or legal advice, and it is not investment advice. Tax rules change and every situation is different, so check the IRS (irs.gov), CT DRS (portal.ct.gov/drs) or NCDOR (ncdor.gov) and talk with a tax professional before you buy or file.
Want help picking the right method before you file?
Or call (475) 242-7941.
Enhance Finance LLC · Andrew Nocera, Tax Preparer & Small-Business Finance Consultant. Serving all of Connecticut, and North Carolina clients remotely.
Not tax, legal or investment advice. Figures are estimates for education. Checked November 2026.