How it works
Multiply the miles you drove by the IRS standard mileage rate for when you drove them. In 2026 the business rate is 72.5¢ a mile from January 1 to June 30 and 76¢ from July 1 to December 31, so miles from each half of the year are counted at their own rate and added up.
For example, 4,000 business miles in the first half and 4,500 in the second:
- 4,000 × 72.5¢ = $2,900
- 4,500 × 76¢ = $3,420
- Total: $6,320
Deduction or reimbursement?
If you're self-employed, the result is the deduction for your car on Schedule C, on top of business parking and tolls. If your employer pays you back, the IRS rate is the most it can pay tax-free, so the result is what you'd get at that rate. If your company uses its own rate, enter it and the calculator uses that instead. How mileage reimbursement works has the rules.
Which miles to enter
Only miles driven for work: to clients, job sites, pickups, the bank or a supplier for your business. Your commute from home to a regular workplace doesn't count. Which drives count as business miles covers the exceptions, like a home office.
You also need a log that backs the number up: the date, miles, places and purpose of every drive. Start with our free mileage log template, or let MileLock write it for you.
This explains the IRS rules in plain English. It isn't tax advice; for your own situation, ask a tax professional.
Let MileLock keep the log for you
It records every drive on its own, you swipe business or personal, and the IRS-ready log is one tap away. Free for 30 drives a month.