Vehicle & Mileage Deduction Calculator
Estimate your 2026 tax deduction for business vehicle use.
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Mileage
Vehicle Cost
Annual Actual Expenses
Deduction Comparison
Actual Expense Method
$0.00
Based on 0.0% business use
Frequently Asked Questions (FAQ)
What is the standard mileage rate for 2026?+
The standard mileage rate for business use of a vehicle in 2026 is 70 cents per mile.
What's the difference between the standard mileage and actual expense methods?+
The standard mileage rate is a simplified method based on a per-mile rate set by the IRS. The actual expense method involves tracking all vehicle-related costs (gas, insurance, depreciation, etc.) and deducting the portion attributable to business use.
Can I switch between deduction methods each year?+
It depends. If you use the standard mileage rate the first year your car is available for business, you can generally switch to the actual expense method in a later year. However, if you use the actual expense method first, you usually cannot switch to the standard mileage rate for that same vehicle in subsequent years.
What records do I need to keep?+
For both methods, you need a reliable record of your business miles, the date of the trips, and the purpose. For the actual expense method, you must also keep receipts and records for all costs, including gas, oil, repairs, insurance, and registration fees.
Are commuting miles deductible?+
No, the cost of commuting between your home and your main or regular place of work is a personal expense and is not deductible.
How does this apply to Uber, Lyft, or other gig economy drivers?+
As an independent contractor, you can use either the standard mileage rate or the actual expense method to deduct your vehicle expenses. It's crucial to track your miles from the moment you go online on the app until you go offline, as all this time is considered business use.