1. Business miles
Parking and tolls are deductible on top of either method.
2. Actual expenses (optional, for the comparison)
Fuel, insurance, repairs, registration, and lease payments or depreciation. The tool deducts the business-use share: business miles divided by total miles.
Enter your business miles, then click Calculate.
Result
What this does not cover
- Self-employed filers only. This is a Schedule C business deduction. A W-2 employee cannot deduct unreimbursed vehicle costs, and an employer reimbursement is a different calculation.
- Depreciation and Section 179 are not modelled. If you use actual expenses, enter any depreciation or lease cost inside your vehicle-cost total. The depreciation portion built into the standard rate, which lowers the car's tax basis, is not computed here.
- Medical, moving and charity rates are out of scope. Those use different rates (charity is a fixed 14 cents).
- Point-in-time 2026 figures. The IRS resets these rates each year and changed them mid-year in 2026. Confirm the current figures before relying on this in a later year.
Common questions
What is the 2026 IRS standard mileage rate for business?
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. The IRS raised the rate mid-year (Announcement 2026-11) because of higher fuel prices, so you must split your miles into the two periods.
Can I deduct parking and tolls as well as the standard mileage rate?
Yes. Business parking fees and tolls are deductible in addition to the standard mileage rate. They are not built into the rate.
Can I switch between standard mileage and actual expenses?
Not freely. The standard rate has to be chosen in the first year the car is used for business. It cannot be used if you already claimed MACRS depreciation or a Section 179 election on the vehicle, for a leased car unless it applies for the whole lease, or when you operate five or more vehicles at once.
How does the actual-expense method work?
You total the year's vehicle running costs (fuel, insurance, repairs, registration, lease payments or depreciation) and deduct the business-use share, which is business miles divided by total miles driven in the year.
Is commuting deductible?
No. Driving between home and a regular workplace is a personal commute. Trips from your principal place of business to a client, job site or supplier generally count, but confirm with IRS guidance or a tax professional.
Is this tax advice?
No. This tool applies published 2026 IRS figures to the numbers you enter for a self-employed filer. It does not replace IRS Publication 463 or a qualified tax professional.