Want the full IRS Notice 2026-10 rate table, the OBBBA §70110 W-2 employee disallowance walkthrough, the first-year election lock-in mechanics, the substantiation requirements under §274(d), and the moving-mileage restriction under OBBBA §70113? Read the companion guide.
Read the Mileage Deduction Guide →
Short Answer
The 2026 IRS optional standard mileage rates are 72.5 cents per mile for business use, 20.5 cents for medical care under §213, 20.5 cents for moving (restricted to active-duty Armed Forces and intelligence community under §217(g) and OBBBA §70113), and 14 cents for charitable use under §170(i). Self-employed taxpayers claim business mileage on Schedule C line 9. Most W-2 employees cannot deduct unreimbursed business mileage because OBBBA §70110 made the section 67 two-percent floor disallowance permanent; only reservists, fee-basis state and local officials, qualified performing artists (Schedule 1 line 12), and eligible educators (Schedule 1 line 11, up to $300) remain eligible. Standard mileage and actual expense are alternative methods; the first year you place a vehicle in service generally determines which path is available for the vehicle's remaining business life.
Key Takeaways
- 2026 rates (Notice 2026-10): Business 72.5c, Medical 20.5c, Moving 20.5c (active-duty Armed Forces and intelligence community only), Charitable 14c. Effective January 1, 2026.
- 2025 rates (Notice 2025-5): Business 70c, Medical 21c, Moving 21c, Charitable 14c.
- Depreciation portion of business rate: 35c/mile for 2026 (33c for 2025). Reduces vehicle basis cumulatively when standard mileage is used.
- OBBBA §70110 made the §67 two-percent floor disallowance permanent. W-2 employees outside the four above-the-line categories cannot deduct unreimbursed business mileage.
- Above-the-line exceptions on Schedule 1 line 12: reservists, fee-basis state and local officials, qualified performing artists. Eligible educators get up to $300 on line 11.
- OBBBA §70113 made the moving deduction disallowance permanent except for active-duty Armed Forces under §217(g) and (newly added in 2026) certain intelligence community members.
- Charitable rate is set by statute at 14c under IRC §170(i) and does not inflate. Volunteer drivers report on Schedule A subject to the §170(b) AGI limits.
- First-year election lock-in: standard mileage in year 1 preserves future flexibility; actual expense in year 1 locks out standard for the rest of the vehicle's business life.
- Substantiation: §274(d) requires contemporaneous logs showing miles, date, place, and business purpose. Reconstructed logs fail at audit.
- FAVR plan max standard automobile cost for 2026: $61,700 (employer reimbursement option).
How This Calculator Works
Step 1 - Look up the rate for the selected purpose and year
The calculator pulls the IRS optional standard mileage rate from Notice 2026-10 (for 2026) or Notice 2025-5 (for 2025). Business: 72.5c (2026) or 70c (2025). Medical: 20.5c (2026) or 21c (2025). Moving: 20.5c (2026) or 21c (2025), available only to active-duty Armed Forces under §217(g) and the intelligence community for 2026 under OBBBA §70113(b). Charitable: 14c, fixed by statute under §170(i). The standard method deduction equals deductible miles times the applicable rate.
Step 2 - Compute the actual expense method (business only)
For business mileage, the actual expense method sums gas, oil, insurance, repairs, license, registration, and depreciation (or lease payments), then multiplies by business-use percent (deductible business miles divided by total annual miles). Personal-use share is not deductible. Depreciation under the actual method uses MACRS (typically 5-year property under section 168(b)) or section 168(k) bonus depreciation in the first year. The actual method does not apply to medical, moving, or charitable purposes - those use only the standard mileage rate or actual out-of-pocket costs (parking and tolls in all four categories are deductible on top of either method).
Step 3 - Apply the OBBBA §70110 W-2 employee disallowance
If you selected W-2 employee (not reservist, performing artist, fee-basis official, or educator) and the purpose is business, the deduction is $0. OBBBA §70110 made the suspension of all §67 misc itemized deductions permanent. Employees should seek an accountable plan reimbursement from the employer under Rev. Proc. 2019-46 §7 - reimbursement at or below the IRS rate is excluded from wages with no income tax or FICA withholding.
Step 4 - Apply the OBBBA §70113 moving restriction
If purpose is moving but filer is not active-duty Armed Forces or intelligence community, the deduction is $0. The civilian moving deduction was suspended by TCJA and made permanent by OBBBA §70113(a). Employer-paid moving expense reimbursements for civilians are taxable wages. The 2026 moving rate of 20.5c applies only to eligible service members and the newly added intelligence community filers (effective for moves after December 31, 2025).
Step 5 - Pick the method and compute tax savings
For business mileage the calculator displays both methods and highlights the larger deduction. Tax savings equal the deduction times the marginal federal rate. Self-employed business mileage also reduces self-employment tax (15.3% Social Security plus Medicare, with the Social Security portion limited to the 2026 SS wage base of $184,500). The first-year election toggle warns when actual expense in year 1 will lock out standard mileage for the rest of the vehicle's business life.
Worked Example: Freelance Consultant, 14,000 Business Miles in 2026
Diana is a self-employed marketing consultant filing Schedule C. In 2026 she drives 14,000 business miles out of 18,000 total miles in a 2023 Honda CR-V she bought for $32,000 in 2023 using standard mileage from year one. Actual operating costs are $3,400 gas, $1,800 insurance, $1,100 repairs and maintenance, $250 license and registration. Her marginal federal rate is 22 percent and her business is profitable enough that the 2026 Social Security wage base does not bind her SE tax.
Inputs
Tax year2026 (Notice 2026-10)
PurposeBusiness (Schedule C)
Filer statusSelf-employed
Business miles14,000
Total annual miles18,000
Business-use percent77.8%
Year 1 vehicle serviceNo (placed in service 2023)
Standard Mileage Method (2026 Notice 2026-10)
14,000 business miles14,000
× 72.5c per mile$0.725
= Standard method deduction$10,150
Depreciation portion (35c × 14,000)$4,900
(Reduces basis from prior years cumulatively)
Actual Expense Method (Hypothetical Year 4)
Gas + oil$3,400
Insurance$1,800
Repairs + maintenance$1,100
License + registration$250
Depreciation (straight-line only since year 1 was standard)$2,400
= Total vehicle operating cost$8,950
× Business-use % (14,000 / 18,000)77.8%
= Actual method deduction$6,963
Result on Schedule C Line 9
Standard mileage (higher)$10,150
Actual expense$6,963
Recommended methodStandard mileage
Federal income tax savings (22% rate)$2,233
SE tax savings (15.3% on net SE)$1,553
Combined federal tax savings$3,786
Why standard wins here: Diana is in year 4 of the vehicle, so MACRS and §168(k) bonus depreciation are no longer available under the actual method (she chose standard in year 1, locking her into straight-line for any later actual-method switch). At 14,000 business miles per year, the 72.5c rate captures more value than the prorated 77.8% of $8,950 in operating costs.
Year-1 variant: If Diana had bought the CR-V in 2026 instead of 2023 and elected actual expense in year 1, §168(k) bonus depreciation under the OBBBA-extended schedule (40% for property placed in service in 2026) plus §179 expensing could produce a much larger first-year deduction (potentially $15,000+) but would lock her out of standard mileage for the rest of the vehicle's business life - relevant if she expects high mileage in years 2 through 5.
Quick Facts: 2026 Standard Mileage Rates
2026 vs 2025 IRS Optional Standard Mileage Rates (Notice 2026-10 / Notice 2025-5)
| Purpose |
2026 Rate |
2025 Rate |
Statutory Basis |
| Business use | 72.5c | 70c | IRC §162; Rev. Proc. 2019-46 §4 |
| Medical care | 20.5c | 21c | IRC §213; Rev. Proc. 2019-46 §5 |
| Moving (active-duty + intelligence community only) | 20.5c | 21c | IRC §217(g); OBBBA §70113 |
| Charitable use | 14c | 14c | IRC §170(i); statutory rate (no inflation) |
| Depreciation portion of business rate | 35c | 33c | Rev. Proc. 2019-46 §4.04; Notice 2026-10 §4 |
| FAVR plan max standard automobile cost | $61,700 | $61,200 | Rev. Proc. 2019-46 §6.02(6); Notice 2026-10 §5 |
Where Mileage Is Claimed on the 2026 Return
| Filer / Purpose |
Form / Schedule |
Line |
Limit |
| Self-employed business (Schedule C) | Schedule C | Line 9 - Car and truck expenses | No cap; reduces income tax + SE tax |
| Farmer business (Schedule F) | Schedule F | Line 10 - Car and truck expenses | No cap; reduces income tax + SE tax |
| Reservist / fee-basis official / performing artist | Form 2106 + Schedule 1 | Line 12 - Certain business expenses | Above-the-line under §62(a)(2)(E)-(B) |
| Eligible educator | Schedule 1 | Line 11 - Educator expenses | Above-the-line, $300 cap per §62(a)(2)(D) |
| Medical (taxpayer, spouse, dependents) | Schedule A | Line 1 - Medical and dental expenses | Itemize only; 7.5% AGI floor per §213(a) |
| Moving (active-duty + intelligence community) | Form 3903 + Schedule 1 | Line 14 - Moving expenses | §217(g) only; OBBBA §70113(b) extension |
| Charitable volunteer | Schedule A | Line 11 - Cash contributions | Itemize only; §170(b) AGI limits |
| W-2 employee (other than four categories above) | (no deduction) | OBBBA §70110 permanent disallowance | $0 - seek accountable plan reimbursement |
Practitioner Insight
The single most expensive mileage error I see at intake is the contractor who switches to LLC status mid-year and changes vehicles, then loses the first-year election clock entirely. The TCJA-era election rules under Rev. Proc. 2019-46 §4.04 are blunt: each vehicle has its own year-one election independent of business status changes. A sole prop who chose standard mileage on a 2022 Honda Civic and trades it for a 2026 Toyota Tacoma in March 2026 has a fresh first-year election on the Tacoma. If the Tacoma is bought for $52,000, weighs over 6,000 GVWR, and qualifies for §179 expensing plus 40% bonus depreciation under OBBBA's extended schedule, the actual method in year 1 could produce $35,000+ of first-year deduction - far more than 72.5c × even 25,000 miles ($18,125). The trap: that election locks the Tacoma to actual expense for its entire business life, and if the client converts to less mileage-intensive work in year 3, the straight-line MACRS recovery in years 3-5 may underperform what standard mileage would have produced. Run a 5-year DCF before the year-one decision on any vehicle over $40,000 GVWR-qualifying. The second most expensive error is mixed personal and business pickup truck use without a contemporaneous log. The IRS routinely disallows 100% at audit when the log is reconstructed from credit card receipts and calendar entries after the fact - §274(d) is unforgiving and bank-statement reconstruction is not contemporaneous. A two-minute-per-trip app like MileIQ or Stride costs nothing and survives audit; a year-end Excel rebuild does not.
Real-World Scenario: Reservist with Drill-Weekend Travel
Sergeant First Class Marcus Reed is a W-2 reservist in the Army National Guard who works as a civilian project manager in his day job. In 2026 he drives 4,200 miles between home (Cleveland, OH) and his reserve unit (Camp Perry, OH) for monthly drills and a two-week annual training. Round-trip distance per drill is 280 miles; 12 drills + annual training = 4,200 miles for the year. Marcus's civilian employer provides no mileage reimbursement for the reserve travel; he pays out of pocket.
Why this works: IRC §62(a)(2)(E) permits members of a reserve component of the Armed Forces to deduct unreimbursed travel expenses for periods when away from home overnight in the performance of services, as an above-the-line adjustment on Schedule 1 line 12. This carves Marcus out of the OBBBA §70110 disallowance that blocks ordinary W-2 employees from claiming Schedule A misc itemized mileage. He uses Form 2106 to compute and then transfers to Schedule 1.
Section 162(l) computation: 4,200 miles × 72.5c = $3,045 standard mileage deduction. Marcus elects the standard method (no vehicle ownership tracking required) and reports on Schedule 1 line 12. His marginal federal rate is 22 percent, so federal tax savings = $670. The deduction also reduces his Ohio state taxable income (Ohio conforms to federal AGI for individuals), saving roughly $96 at the 3.5% Ohio rate.
Trap to avoid: If Marcus's reserve unit had paid him a per-diem or mileage reimbursement under an accountable plan, his unreimbursed expense would be only the excess of actual cost over reimbursement (typically zero, so no deduction). Reservists must verify whether the unit's BAS / BAH / DTS travel payment is accountable-plan reimbursement (in which case no deduction) or simply imputed income on the W-2 (in which case deduction is allowed). Check Leave and Earnings Statement (LES) box H for travel pay characterization and consult finance NCO if unclear.
When This Calculator Does Not Cover Your Situation
- Fleet of 5+ vehicles: Per Rev. Proc. 2019-46 §4.05, the standard mileage rate cannot be used for any vehicle used simultaneously with five or more vehicles in the taxpayer's trade or business. Fleet operators must use the actual expense method for all fleet vehicles. The calculator assumes a single-vehicle case.
- Vehicles for hire (taxi, ride-share): Same disallowance as fleets - if you use the vehicle as a taxi, limousine, or for hire (other than a single rideshare driver under standard mileage, which is permitted), the standard rate cannot be used. Most Uber/Lyft drivers operate one vehicle and can still use the standard rate.
- Section 179 + §168(k) bonus year-one math: The calculator does not compute MACRS, §179 expensing limits, or §168(k) bonus depreciation under the OBBBA-extended schedule. If your first-year actual-method analysis hinges on bonus depreciation for a heavy SUV or truck (6,000+ GVWR), run the depreciation separately or consult Form 4562 instructions for the correct numbers.
- Leased vehicle §280F inclusion: Luxury vehicle leases trigger an income inclusion under §280F to recapture the depreciation benefit that would have been limited if owned. The calculator does not compute the lease inclusion amount; check the IRS lease inclusion tables in Pub 463.
- Commuting (home to regular workplace): Commuting miles are never deductible under either method - they are personal expenses. The calculator assumes the user has already excluded commuting miles from the "deductible miles" input. The principal place of business test under Treas. Reg. §1.280A-2(c) determines whether home-office travel qualifies.
- Hobby vs business determination: If your activity is a hobby (no profit motive under §183), expenses are not deductible for tax years 2018 onward (OBBBA §70110 cemented this). The calculator does not perform the hobby-loss test; if your business has consecutive loss years, consult Pub 535 archives or current Schedule C instructions for the safe harbor.
- Partnership or S-corp accountable plan: A partner driving for the partnership or an S-corp shareholder-employee driving for the S-corp typically receives mileage reimbursement via the entity's accountable plan rather than claiming a personal deduction. The reimbursement is excluded from W-2 wages or guaranteed payments. The calculator assumes a direct deduction case.
- Electric vehicle charging costs (actual method): The actual expense method must include electricity costs for EV charging at home and at public stations. The IRS standard mileage rate is designed for ICE vehicles and may understate or overstate EV economics depending on local electricity rates. Run both methods carefully for EVs.
FAQ: 2026 Mileage Deduction
What are the 2026 IRS standard mileage rates?
Per IRS Notice 2026-10 (effective January 1, 2026), the 2026 optional standard mileage rates are: 72.5 cents per mile for business use (up 2.5 cents from 70 cents in 2025); 20.5 cents per mile for medical care described in section 213 (down 0.5 cents from 21 cents in 2025); 20.5 cents per mile for moving expenses under section 217(g), restricted to active-duty members of the Armed Forces on a permanent change of station and, beginning in 2026, certain members of the intelligence community on a change of assignment requiring relocation per OBBBA section 70113(b); and 14 cents per mile for charitable use under section 170(i), set by statute and unchanged. The depreciation portion of the business rate is 35 cents per mile for 2026 (up from 33 cents for 2025). The maximum standard automobile cost for fixed and variable rate (FAVR) plans is $61,700.
Can W-2 employees deduct mileage?
No, for the vast majority of W-2 employees. OBBBA section 70110 made permanent the suspension of all miscellaneous itemized deductions subject to the section 67 two-percent of adjusted gross income floor, which includes unreimbursed employee business expenses on Form 2106. A W-2 employee who drives personally owned vehicle miles for the employer's business cannot claim a Schedule A miscellaneous itemized deduction for those miles. Four narrow categories of W-2 worker remain eligible to deduct unreimbursed travel as an above-the-line adjustment on Schedule 1 line 12 of Form 1040 (2025) per section 62(a)(2): members of a reserve component of the Armed Forces, state and local government officials paid in whole or in part on a fee basis, qualified performing artists, and (separately, on Schedule 1 line 11, up to $300) eligible educators under section 62(a)(2)(D). The standard mileage rate still applies for these categories. The proper path for most W-2 employees is to seek an accountable plan reimbursement from the employer, which is excluded from wages under Rev. Proc. 2019-46 section 7.06.
Which method gives the larger deduction - standard or actual?
It depends on the vehicle, the mileage volume, and the actual costs. Standard mileage typically wins for: high-mileage drivers (10,000+ business miles per year), used or low-cost vehicles, and drivers who do not want to track every receipt. Actual expense typically wins for: low-mileage drivers (under 5,000 business miles per year) of expensive vehicles, the first year of ownership on a depreciable vehicle (when MACRS or section 168(k) bonus depreciation can produce a large deduction), and vehicles with above-average operating costs. Run both methods in the calculator above using your actual numbers. Note that the first-year election locks the rest of the vehicle's deductible life: if you choose actual expense in year 1, you generally cannot switch to standard mileage in later years for that vehicle. Standard mileage in year 1 permits switching to actual in later years but only via straight-line depreciation, not MACRS or bonus.
What is the first-year election lock-in rule?
Per Rev. Proc. 2019-46 section 4.04 and Treas. Reg. section 1.274-5(j), the year in which a taxpayer first places a vehicle in business service determines the long-term deduction strategy. If the standard mileage rate is used in the first year the vehicle is placed in service, the taxpayer may switch to the actual expense method in any later year but must use straight-line depreciation over the remaining useful life. Section 168(k) bonus depreciation and the MACRS 200% declining-balance method are not available in those later years. If the actual expense method is used in the first year (typically to claim section 168(k) bonus or MACRS accelerated depreciation), the standard mileage rate is unavailable for the rest of the vehicle's business life. Mid-life switching from standard to actual is the common path; switching the other direction is generally prohibited. For leased vehicles, the standard mileage rate must be used for the entire lease term if chosen in year one.
What records do I need to substantiate mileage?
IRC section 274(d) and Treas. Reg. section 1.274-5(c) require a contemporaneous record (written or app-based) showing four elements for each business trip: the amount of the expense or use (miles), the time of the trip (date), the place (origin and destination), and the business purpose (client, deal, errand). Acceptable formats include a mileage app (MileIQ, Stride, Everlance, QuickBooks Self-Employed), a paper logbook, or a spreadsheet updated at or near the time of the trip. Reconstructing a log months after the fact does not meet the contemporaneous standard and is the leading cause of audit deductions disallowed at examination. Total annual mileage must also be substantiated (typically via odometer reading at January 1 and December 31, or via vehicle service records). Personal-use mileage is the residual: total miles minus business + medical + moving + charitable miles.
Can I claim moving mileage in 2026?
Only if you are an active-duty member of the Armed Forces on a permanent change of station under IRC section 217(g), or a member of the intelligence community on a change of assignment that requires relocation under OBBBA section 70113(b) for moves after December 31, 2025. All other taxpayers cannot deduct moving expenses (including moving mileage) for tax years 2026 through 2028 (and onward, since OBBBA made the disallowance permanent for non-military taxpayers). The 2026 moving mileage rate is 20.5 cents per mile. Eligible service members claim the deduction on Form 3903 and report the result on Schedule 1 (Form 1040) line 14. Civilian moves for new jobs - which were deductible before TCJA - remain disallowed under section 217(k) as supplemented by OBBBA section 70113(a). Employer-provided moving expense reimbursements for civilians are taxable wages.
How is depreciation handled under the standard mileage rate?
The standard mileage rate includes a built-in depreciation component (35 cents per mile for 2026, 33 cents for 2025, 30 cents for 2024, 28 cents for 2023, 26 cents for 2022 per Notice 2026-10 section 4). This portion reduces the vehicle's adjusted basis cumulatively for the years standard mileage was used. When the vehicle is sold or exchanged, the reduced basis governs gain or loss recognition. Example: a $40,000 vehicle driven 60,000 business miles across four years (2023-2026) using standard mileage reduces basis by 15,000 + 18,000 + 19,800 + 21,750 = $74,550 - capped at the original $40,000, so adjusted basis becomes $0 (not negative). A sale for $12,000 produces $12,000 of ordinary gain (recapture) on Form 4797. Track the depreciation portion in your workpapers each year using the rates above.
Where do I claim the mileage deduction on my return?
It depends on the purpose and the filer's status. Self-employed taxpayers claim business mileage on Schedule C line 9 (Car and truck expenses); partners and S-corp shareholders claim it through the K-1 distributive share or via accountable plan reimbursement from the entity; farmers use Schedule F line 10. Above-the-line filers (reservists, fee-basis officials, qualified performing artists, eligible educators) report on Schedule 1 line 12 (or line 11 for educators). Medical mileage is deducted as part of total medical expenses on Schedule A line 1, subject to the 7.5% AGI floor under section 213(a). Moving mileage is reported on Form 3903 (active-duty Armed Forces and intelligence community only) and flows to Schedule 1 line 14. Charitable mileage is reported as part of cash and non-cash contributions on Schedule A line 11 or line 12, subject to the AGI limits of section 170(b). Form 2106 (Employee Business Expenses) is now used only by the four above-the-line categories per OBBBA section 70110.
Is the 2026 business rate of 72.5 cents per mile the same as the IRS reimbursement rate for employers?
Yes. An employer that uses the IRS standard business mileage rate of 72.5 cents per mile to reimburse employees under an accountable plan (per Rev. Proc. 2019-46 section 7) excludes the reimbursement from the employee's wages, with no income tax or FICA withholding required. Reimbursements at or below 72.5 cents per mile in 2026 are deemed substantiated for the business amount of the expense and the time, place, and business purpose elements still must be substantiated by the employee. Reimbursements above 72.5 cents per mile become a wage payment to the extent of the excess (subject to all income and employment tax withholding). Employers may also use a fixed and variable rate (FAVR) plan under Rev. Proc. 2019-46 section 8, with the maximum standard automobile cost set at $61,700 for 2026. Self-employed taxpayers do not 'reimburse themselves' - they take the deduction directly on Schedule C.
Can I use the standard mileage rate for a vehicle I lease?
Yes, with two key conditions per Rev. Proc. 2019-46 section 4.03. First, if you use the standard mileage rate for a leased vehicle in the first year of the lease, you must continue to use the standard mileage rate for the entire lease term (including renewal periods). You cannot switch to the actual expense method mid-lease. Second, the standard mileage rate cannot be used for a vehicle leased under a long-term arrangement (30 days or longer) by an employer who provides the vehicle to a more-than-5-percent owner or related party. Leased vehicles never receive a depreciation deduction under the actual method (only the lease payment is deductible, prorated by business use), so the standard mileage rate often produces a larger deduction for leased business vehicles. Note that section 280F lease inclusion rules apply to luxury vehicles regardless of method.
Official Sources
- IRS Notice 2026-10 (PDF) - 2026 Standard Mileage Rates (Business 72.5c, Medical 20.5c, Moving 20.5c, Charitable 14c; depreciation portion 35c; FAVR max $61,700; effective January 1, 2026)
- IRS Newsroom (Dec 29, 2025) - IRS sets 2026 business standard mileage rate at 72.5 cents per mile
- IRS - Standard Mileage Rates - master rate table for current and historical years
- Rev. Proc. 2019-46 (PDF) - rules for computing the deductible costs of operating an automobile and substantiation framework under §274(d)
- IRC §162 - Trade or Business Expenses (Cornell LII)
- IRC §170(i) - Charitable Mileage Rate (Cornell LII) - statutory 14c rate
- IRC §213 - Medical Expense Deduction (Cornell LII) - includes medical transportation
- IRC §217 - Moving Expenses (Cornell LII) - active-duty Armed Forces exception under §217(g)
- IRC §274(d) - Substantiation Requirements (Cornell LII) - contemporaneous log requirement
- IRC §62(a)(2) - Above-the-Line Adjustments (Cornell LII) - reservist, performing artist, fee-basis official, educator exceptions
- IRC §67 - 2% Floor on Misc Itemized Deductions (Cornell LII) - permanent disallowance under OBBBA §70110
- IRS Publication 463 (PDF) - Travel, Gift, and Car Expenses - operational guide for taxpayers
Decision Step: How Should You Approach the Mileage Deduction?
Route A - Self-Employed High-Mileage Driver (10,000+ business miles per year)
Use the standard mileage rate. At 72.5c per mile in 2026 the rate captures fuel, depreciation, insurance, and maintenance in a single number with minimal recordkeeping beyond a contemporaneous mileage log. Report on Schedule C line 9. Read the Mileage Deduction Guide for the substantiation walkthrough and run the Self-Employment Tax Calculator to see the combined income tax + SE tax savings.
Route B - Self-Employed Low-Mileage Driver of Expensive Vehicle (Year 1 with Bonus Depreciation)
Consider the actual expense method in year 1 to claim §168(k) bonus depreciation under the OBBBA-extended schedule and §179 expensing on a heavy SUV or truck (6,000+ GVWR). This locks the vehicle to actual expense for its entire business life - verify with a 5-year projection that the year-1 windfall outweighs lost flexibility. Read the guide for the first-year election lock-in mechanics.
Route C - W-2 Employee with Unreimbursed Business Mileage
You almost certainly cannot deduct the mileage. OBBBA §70110 made the §67 two-percent floor disallowance permanent. The correct response is to request an accountable plan mileage reimbursement from your employer at the 72.5c per mile IRS rate; the reimbursement is excluded from your W-2 wages under Rev. Proc. 2019-46 §7.06 (no income tax, no FICA). If the employer refuses, only the four narrow above-the-line categories on Schedule 1 line 12 / line 11 remain: reservist, fee-basis state-local official, qualified performing artist, eligible educator. Read the guide for the OBBBA §70110 walkthrough.
Route D - Medical or Charitable Mileage on Schedule A
Medical mileage (20.5c per mile in 2026) is deducted as part of total medical expenses on Schedule A line 1, subject to the 7.5% AGI floor under §213(a) - you must itemize and your total medical expenses must exceed 7.5% of AGI to benefit. Charitable volunteer mileage (14c per mile, fixed by statute) is reported on Schedule A line 11 or 12 subject to §170(b) AGI limits. For most households the 2026 standard deduction ($16,100 single / $32,200 MFJ per Rev. Proc. 2025-32) exceeds itemized totals, so the medical/charitable mileage rarely produces a deduction. Run the Itemize vs Standard Deduction Calculator first to confirm itemizing is worth it.
This calculator is for educational and illustrative purposes only. It does not constitute tax, legal, or financial advice. The mileage deduction interacts with depreciation recapture under §1245, the §280F luxury vehicle limits, the §168(k) bonus depreciation schedule extended by OBBBA, §179 expensing limits, the §163(h)(4) auto loan interest deduction under OBBBA, fleet rules under Rev. Proc. 2019-46 §4.05, the family member and related party rules, and state income tax conformity issues that this tool does not fully model. Consult a qualified tax professional before booking large vehicle deductions, especially in the first year of vehicle ownership where the election decision is irrevocable. Tax laws are subject to change.