Business Mileage Deduction Calculator
Turn business miles driven into a deduction using the IRS standard mileage rate, and see the tax it saves.
How it works
Deduction = business miles × standard mileage rate · Tax saved = deduction × marginal rate
The standard mileage rate bundles fuel, maintenance, insurance and depreciation into a single per-mile figure, so you only need to log business miles rather than every car expense. The 2024 business rate is $0.67 per mile. The alternative — the actual-expense method — deducts the business-use share of real costs, which can win for expensive vehicles; but if you want to use the standard rate you must choose it in the first year the car is in service.
Worked example
Driving 8,000 business miles at $0.67 gives an $5,360 deduction. For a self-employed filer at a 25% combined marginal rate, that saves about $1,340 in tax — worth $0.1675 for every mile logged.
Frequently asked questions
Does commuting count as business miles?
No. Driving between home and your regular workplace is a non-deductible commute. Trips between job sites, to clients, or to the bank for the business do count.
Standard rate or actual expenses?
The standard rate is simpler and often better for fuel-efficient cars. Actual expenses can beat it for costly vehicles, but you must pick the standard rate in year one if you ever want to use it for that car.
What records do I need?
A contemporaneous mileage log showing date, destination, purpose and miles for each business trip. The IRS routinely disallows mileage claims that lack a supporting log.
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Educational estimate using simplified US federal rules — ignores state tax, credits and your full situation. Not tax advice; confirm with a CPA or IRS guidance.