Business Mileage Deduction Calculator
Multiply your business miles by the IRS standard mileage rate to estimate your deduction or reimbursement. The rate is editable — always confirm the current year’s figure with the IRS before filing.
Open the free Mileage Deduction Calculator →How it works
The standard mileage method is the simplest way to deduct vehicle costs for business: you only need to track how many miles you drove for work. The IRS publishes a single per-mile rate each year that bundles together fuel, maintenance, insurance, registration and depreciation into one number, so you don’t have to itemize those costs separately.
The formula is just business miles × IRS standard mileage rate = your deduction. Because the IRS revises the rate annually (and sometimes mid-year), this calculator leaves the rate field editable rather than hard-coding a figure that might be stale. Look up the current year’s rate on the official IRS website, type it in, and enter your miles.
The same math doubles as a mileage reimbursement calculator: if an employer or client reimburses you per mile, set the rate to their figure (many simply use the IRS rate) and the result is the amount you’re owed for that driving.
Worked example
Say you’re a freelancer who drove 6,000 miles for business this year — client meetings, supply runs and trips to the post office. You check the IRS site and the standard mileage rate for the year is $0.67 per mile.
Your estimated deduction is 6,000 × $0.67 = $4,020. If you’re in a 22% marginal tax bracket and also pay roughly 15.3% self-employment tax, that $4,020 deduction could save you around $1,500 in tax. Used as a reimbursement at the same rate, that same 6,000 miles would entitle you to $4,020 back from the client or employer.
Frequently asked questions
- How do I calculate my business mileage deduction?
- Multiply your total business miles by the IRS standard mileage rate. For example, 6,000 business miles at $0.67 per mile equals a $4,020 deduction. The standard mileage method bundles fuel, maintenance, insurance and depreciation into one per-mile figure, so you do not deduct those costs separately.
- What is the IRS standard mileage rate?
- The IRS standard mileage rate is a per-mile amount the IRS publishes each year for business driving. It changes annually, so the rate field in this calculator is editable. Always confirm the current year’s figure on the official IRS website before filing because we do not hard-code a rate that may be out of date.
- What counts as business miles?
- Business miles are miles driven for work: trips to clients, job sites, the bank, suppliers, the post office, and business errands. Commuting from home to a regular workplace is generally not deductible. Keep a contemporaneous log with the date, destination, purpose and miles for each trip.
- Can I use this as a mileage reimbursement calculator?
- Yes. Enter the miles and set the rate to whatever your employer or client reimburses (many use the IRS rate). Miles times rate gives the reimbursement amount. This is the same math used for both tax deductions and reimbursing employees or contractors for business driving.
- Standard mileage rate or actual expenses — which is better?
- The standard mileage rate is simpler: you only track miles. The actual-expense method lets you deduct the business-use share of real costs (gas, repairs, insurance, lease or depreciation), which can be larger for expensive vehicles. Calculate both ways and compare, but note the IRS has rules about switching methods, so check before you decide.
- Do I need to keep a mileage log?
- Yes. The IRS expects a record showing the date, miles, destination and business purpose of each trip. A written log, spreadsheet or mileage app all work. Without adequate records the deduction can be disallowed in an audit, so log trips as they happen rather than reconstructing them later.