2026 Mileage Deduction Calculator (IRS Rates: 72.5¢ and 76¢ per Mile)
The IRS raised the 2026 business mileage rate in the middle of the year, so 2026 miles need two calculations. Enter your business miles for each half of the year and see your deduction and roughly what it saves you in tax.
Estimates for education only, not tax, legal, or insurance advice.
How the 2026 mileage deduction works
If you’re self-employed and drive for your business, you can deduct the cost of those miles on Schedule C. Most people use the IRS standard mileage rate because it only takes a mileage log, not receipts for every gallon of gas.
2026 has two business rates
- January 1 to June 30, 2026: 72.5 cents per business mile.
- July 1 to December 31, 2026: 76 cents per business mile, after the IRS’s mid-year increase.
Keep your log split by date so you can apply the right rate to each half. Parking fees and tolls for business trips are deductible on top of the rate. The 2026 charity rate is 14 cents per mile. The medical rate is 20.5 cents for January through June and 23.5 cents from July 1.
Which miles count?
- Driving between client sites, to meet customers, to the bank or post office for the business, or to pick up supplies.
- Travel from a qualifying home office to other work locations.
- Not your regular commute from home to a regular workplace, which is personal.
Standard rate vs. actual expenses
With the actual expense method, you add up gas, insurance, repairs, registration and lease payments or depreciation, and deduct your business-use percentage. It can win for expensive or heavily used vehicles. To use the standard rate for a car you own, you generally must choose it in the first year the car is used for business. If you start with actual expenses and depreciation, switching to the standard rate later is generally not allowed for that car.
Keep a log the IRS will accept
For each trip, record the date, where you went, the business purpose and the miles. Note your odometer reading at the start and end of the year. A phone app or a simple spreadsheet works, as long as you keep it as you go. A log rebuilt at tax time is weak support.
Employees
W-2 employees can’t deduct unreimbursed work mileage on their federal return. Ask your employer about reimbursement instead. Employer reimbursements at or below the IRS rate under an accountable plan are generally tax-free.
Frequently asked questions
What is the IRS mileage rate for 2026?
For business use it’s 72.5 cents per mile for miles driven January 1 through June 30, 2026, and 76 cents per mile for miles driven July 1 through December 31, 2026.
Can I deduct parking and tolls as well as mileage?
Yes. Business parking fees and tolls are deductible in addition to the standard mileage rate. Parking at your regular workplace is not.
Is my commute deductible?
No. Driving from home to your regular place of work is commuting and is personal. Trips from a qualifying home office to clients or other work sites generally are business miles.
Do I need receipts if I use the standard rate?
You don’t need gas receipts, but you do need a mileage log showing the date, destination, business purpose and miles for each trip, plus receipts for parking and tolls.
Does the mileage deduction reduce self-employment tax?
Yes. It lowers your Schedule C profit, which reduces both income tax and self-employment tax.
Sources and assumptions (updated Oct 2026)
- IRS, Standard mileage rates (updated Jul 2026): 2026 business 72.5¢ (Jan. 1–June 30, IR-2025-128) and 76¢ (July 1–Dec. 31, IR-2026-29); charity 14¢; medical/military moving 20.5¢ then 23.5¢.
- IR-2025-128 and Notice 2026-10: the standard rate for a vehicle you own must be chosen in its first year of business use; unreimbursed employee travel isn’t deductible as an itemized deduction; 35¢ of the 2026 business rate counts as depreciation (lowers the car’s basis).
- IRS Publication 463: commuting, parking and tolls, recordkeeping.
- Tax savings estimate: deduction × your federal bracket, plus self-employment tax of 15.3% on 92.35% of the deduction (assumes your self-employment earnings are under the $184,500 Social Security wage base). It ignores Connecticut income tax and the smaller income-tax effect of the self-employment tax deduction, so treat it as rough.
Estimates for education only, not tax, legal, or insurance advice.
Questions about your numbers? Talk them through with a Danbury tax preparer, free for 15 minutes.