Business Mileage Deduction Calculator
Calculate your IRS standard mileage deduction at the current rate (67¢/mile) and the estimated tax savings based on your bracket.
IRS Standard Mileage Rate Explained
The IRS standard mileage rate bundles the per-mile cost of fuel, depreciation, insurance, maintenance, and registration into a single rate. By using this rate instead of tracking actual costs, self-employed individuals simplify record-keeping while still capturing a substantial deduction. The rate is adjusted annually — the 2025 rate of 67¢/mile is the highest in IRS history.
High-Value Mileage Scenarios
For self-employed workers who drive significantly for business — real estate agents, delivery contractors, consultants who travel to clients — the mileage deduction can be one of the largest single deductions on their return. At 67¢/mile, 20,000 business miles generates a $13,400 deduction, saving $2,948 in taxes at the 22% bracket.
Mileage Log Requirements
The IRS requires a contemporaneous log (kept at the time of each trip, not reconstructed later) showing date, destination, business purpose, and miles driven. Digital apps like MileIQ or Everlance automatically track and categorize trips using GPS, making documentation nearly effortless. Paper logs are also acceptable if maintained consistently.