Mileage Deduction Calculator for the Self-Employed
For the self-employed, mileage is usually the largest deduction that requires no cash outlay beyond what you were already spending. At the 2026 second-half rate of 76 cents, 12,000 business miles is a $9,120 deduction — which at a 25% marginal rate plus self-employment tax is worth well over $3,000 in real money.
The catch is that it is also one of the most commonly disallowed deductions on audit, almost always for the same reason: no contemporaneous log. This calculator handles the split 2026 rates correctly; the sections below cover the substantiation standard, the standard-versus-actual choice, and which trips actually count.
IRS rates, cents per mile
| Period | Business | Medical | Charity |
|---|---|---|---|
| Jul 1 – Dec 31, 2026 | 76 | 23.5 | 14 |
| Jan 1 – Jun 30, 2026 | 72.5 | 20.5 | 14 |
| 2025 (full year) | 70 | 21 | 14 |
The charitable rate is fixed by statute, so it does not change with fuel costs.
Total reimbursement
$8,945.00
12,000 miles at a blended 74.54¢ per mile.
- Jul 1 – Dec 31, 2026 — 7,000 mi
- $5,320.00
- Jan 1 – Jun 30, 2026 — 5,000 mi
- $3,625.00
- Why the rates differ
- Mid-year change
At 76¢ per mile.
At 72.5¢ per mile.
The IRS raised the 2026 business rate on 1 July, so a claim spanning that date must be split.
Rates are the IRS optional standard mileage rates. Tolls and parking are claimed separately. This is an estimate, not tax advice — keep a contemporaneous mileage log and confirm treatment with your accountant.
Starting values are set for a typical self-employed scenario — change any field to match yours. Need the plain version? Mileage Reimbursement Calculator.
Standard rate or actual expenses
You may deduct either the standard mileage rate or your actual vehicle costs, but not both for the same vehicle in the same year. The choice is not purely arithmetic — it has lock-in consequences.
| Factor | Standard rate | Actual expenses |
|---|---|---|
| Records needed | Mileage log only | Every receipt, plus mileage for the business share |
| Best for | Fuel-efficient, low-cost vehicles | Expensive vehicles, heavy repairs, high depreciation |
| Depreciation | Built into the rate | Claimed separately, including bonus depreciation |
| Owned vehicle | Must choose it in the first business year to keep the option to switch later | Can be chosen any year, but forecloses switching to standard |
| Leased vehicle | Must be used for the entire lease including renewals | Must be used for the entire lease if chosen first |
What the IRS expects from a mileage log
The substantiation standard is where most disallowed deductions fail. A reconstructed spreadsheet built in April for the previous year is markedly weaker than a contemporaneous record.
- Record the date, destination, business purpose and miles for each trip. A one-line entry is enough if it contains all four.
- Note odometer readings at the start and end of the year, so total mileage can be reconciled against the business share.
- "Contemporaneous" means at or near the time of the trip. A weekly habit is fine; an annual reconstruction is not.
- An app that logs trips automatically satisfies this and removes the discipline problem entirely — the cost is trivially deductible.
- Keep the log for at least three years after filing, and longer if you claimed depreciation on the vehicle.
Which trips count
- Commuting from home to a regular place of business is never deductible, regardless of how far it is or whether you work unusual hours.
- Travel between two work locations is deductible — client to client, office to job site.
- If your home is your principal place of business, trips from home to clients or suppliers are business miles rather than commuting. This is a significant advantage for home-based businesses and it is worth documenting the home-office qualification carefully.
- A trip with both business and personal purposes is deductible for the business portion. A detour for personal errands is not.
- Tolls and parking are claimed on top of the standard rate; fuel, insurance, repairs and depreciation are not, because the rate already includes them.
- Miles driven for medical or charitable purposes use their own, much lower rates, and are claimed elsewhere on the return.
Frequently asked questions
- Can I deduct mileage if I'm self-employed?
- Yes. Business mileage is deducted on Schedule C, either at the standard rate or through actual vehicle expenses. Unlike employees, the self-employed were not affected by the suspension of unreimbursed employee travel deductions, so this remains fully available.
- What is the 2026 mileage rate for self-employed work?
- 72.5 cents per mile for travel from 1 January to 30 June 2026, and 76 cents from 1 July onward. A full-year claim must be split at that date, since applying one rate to the whole year produces the wrong figure.
- Is commuting deductible?
- No. Travel between home and a regular workplace is a personal expense however long the drive. The important exception is where your home is your principal place of business — then trips from home to clients or job sites are business miles.
- What records do I need for a mileage deduction?
- A contemporaneous log with the date, destination, business purpose and miles for each trip, plus odometer readings for the year. Records created near the time of travel carry far more weight than a reconstruction; inadequate logs are the most common reason mileage deductions are disallowed.
- Should I use the standard rate or actual expenses?
- The standard rate is simpler and often larger for economical vehicles. Actual expenses can win for expensive vehicles with high depreciation or heavy repair costs. Note the lock-in: on an owned vehicle you must use the standard rate in the first business year to retain the option of switching between methods later.
- Can I claim mileage and fuel costs together?
- No. The standard rate already includes fuel, maintenance, tyres, insurance and depreciation, so claiming those separately would be double-counting. Tolls and parking are the exception and can be added on top.