Mileage deduction calculator
Business driving is one of the most commonly under-claimed deductions, mostly because people don't realise how much the per-mile rate is worth once the miles add up.
Estimate only. Figures update as you type. Not tax advice — see the note at the bottom of this page.
Why the rate is higher than your gas bill
The standard rate approximates the full cost of operating a vehicle: fuel, depreciation, maintenance, tires, and insurance. That's why it lands well above what you actually spend at the pump. On a car getting reasonable mileage, the deduction typically exceeds your out-of-pocket fuel cost by a wide margin.
Which miles count
Travel between work locations, to client sites, to pick up supplies, and to business meetings generally qualifies. Commuting from home to a regular workplace generally does not. For people whose home is their principal place of business, the calculus changes, and trips from a home office to a client can count in ways they wouldn't for a commuter.
The record is the deduction
A mileage deduction without a log is a deduction you may not be able to defend. What's generally expected is the date, destination, purpose, and miles for each trip. Apps that log this automatically from your phone's location have made this far less tedious than it used to be, and they cost far less than the deduction they protect.
Standard rate or actual expenses
You can instead deduct the actual costs of operating the vehicle for business. Actual costs sometimes win for expensive vehicles or heavy business use, but the record-keeping is significantly heavier, and the choice you make in the first year of using a vehicle affects what you're allowed to do in later years.
Common questions
What is the current IRS mileage rate?
The figure used in this calculator is shown on the tape above and reflects the current published standard rate for business use. The IRS sets it annually, usually announcing it in December for the following year.
Does commuting count?
Generally not. Travel between your home and a regular place of work is treated as personal commuting. Trips between business locations during the day generally do count.
Can I claim mileage and also deduct gas?
No. The standard rate already covers fuel and operating costs. You choose either the standard rate or actual expenses, not both for the same vehicle.