Mileage Deduction Calculator
For 2026, the IRS standard business mileage rate is 72.5 cents per mile. Every business mile you drive — to client meetings, between job sites, on supply runs, or for any business errand — qualifies. This calculator estimates your Schedule C mileage deduction and the combined federal + SE tax savings in seconds.
Estimate your 2026 mileage deduction
2026 IRS standard rate · 72.5¢/mile · applies to net Schedule C income
Simplified estimate only. The SE component applies the Schedule SE 92.35% adjustment; actual federal savings can differ because of the half-SE deduction, QBI, taxable-income limits, and marginal-bracket effects. State tax savings are not included. Review the calculator methodology and use the quarterly tax calculator for the full picture.
What counts as a business mile?
The IRS allows mileage between business locations during the work day. The key word is "between" — driving from home to your regular place of business is commuting, which is never deductible.
- ✅ Drives to client meetings, job sites, or sales calls
- ✅ Drives between two business locations (e.g., from one client to another)
- ✅ Trips to suppliers, the post office for business mail, or the bank for business deposits
- ✅ Drives to temporary work locations (gigs, conferences, training, networking events)
- ❌ Daily commute from home to a regular workplace
- ❌ Personal errands sandwiched into a business trip (only the business portion counts)
Standard rate vs. actual expenses
| Standard mileage rate | Actual expenses | |
|---|---|---|
| 2026 calculation | 72.5¢ × business miles | Sum of gas, maintenance, insurance, depreciation × business % |
| Records needed | Mileage log only | Every receipt for car expenses |
| Best for | Most freelancers (5k–25k miles, normal car) | Heavy commercial vehicles, very high gas / maintenance |
| Year-1 lock-in | You can switch year to year | Once you start, you're often locked in for that vehicle |
Worked examples (2026)
| Profile | Business miles | Deduction (72.5¢/mi) | Simplified fed + SE estimate (22% bracket) |
|---|---|---|---|
| Light user (occasional client visits) | 2,500 | $1,813 | $655 |
| Average freelancer | 8,000 | $5,800 | $2,096 |
| Frequent driver (real estate, sales) | 15,000 | $10,875 | $3,929 |
| Heavy gig driver (rideshare/delivery) | 30,000 | $21,750 | $7,858 |
State income tax savings (an additional 4–10% in high-tax states like California, New York, or Oregon) come on top of these federal numbers.
Track every mile — apps make it easy
Free or cheap mileage-tracking apps (MileIQ, Stride, Everlance) auto-log drives via GPS. The IRS requires you to substantiate mileage with a contemporaneous log — building one from memory at year-end is a red flag. Set up the app once and forget it.
Common mistakes
- Counting commute miles. Home → regular office is never deductible.
- Estimating mileage at year-end. Reconstructed logs don't satisfy IRS substantiation requirements. Track contemporaneously.
- Mixing standard rate with car-expense receipts in the same year. Pick one method.
- Forgetting to subtract personal use. If a business trip includes a personal stop, only the business portion counts.
- Using the wrong rate. 72.5¢/mi is the 2026 business rate. Medical/move and charity rates are lower.
How mileage interacts with other freelancer taxes
Mileage is a Schedule C expense, so it can reduce both federal income tax and self-employment tax. In this simplified model, a $1,000 deduction reduces the SE-tax component by about $141 after the Schedule SE 92.35% adjustment, plus a federal marginal-rate component that depends on your tax situation. It also reduces the base used by your quarterly Form 1040-ES payments.
Mileage deduction FAQ
What is the 2026 IRS standard mileage rate?
72.5 cents per mile for business use. (Medical/move = 21¢/mi; charitable = 14¢/mi — set by statute, not adjusted.)
Can I deduct mileage from home to my office?
No — that's commuting and never deductible. Drives between job sites, to client meetings, or to suppliers during the work day all qualify.
Standard rate or actual expenses — which is better?
Standard rate (72.5¢/mi) usually wins for typical freelancers in normal vehicles. Actual expenses can win for heavy commercial use, very fuel-inefficient vehicles, or first-year-of-business vehicles where depreciation is large.
What records do I need to keep?
A contemporaneous log: date, miles driven, purpose, start/end location. Apps like MileIQ, Stride, or Everlance handle this automatically via GPS. Keep records for at least 3 years after filing.
Does the mileage deduction reduce SE tax?
Yes. Like all Schedule C expenses, mileage reduces both federal income tax and the 15.3% self-employment tax — making it one of the highest-leverage deductions for drive-heavy freelancers.
Compare with other deductions
Mileage is one piece of a freelancer's full deduction stack. See the best tax deductions for 1099 workers, home office deduction, self-employed health insurance deduction, and the complete freelance business expenses list. For the broader strategy, see how to lower self-employment tax.
Related guides & calculators
Last updated: January 15, 2026. Disclaimer: Educational estimate only. Not tax or legal advice. Consult a licensed CPA before filing. Source: IRS standard mileage rates.
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