The standard mileage rate bundles gas, maintenance, insurance, and depreciation into one per-mile figure — but the actual expense method can win for an expensive-to-operate vehicle with heavy business use.
How it works
The standard mileage deduction is simply business miles times the current-year rate. The actual expense method applies the business-use percentage to total actual vehicle costs — whichever produces the larger deduction is worth using, subject to specific rules about switching methods between years.
What this does not include
Switching from the standard mileage method to actual expenses (or vice versa) has specific IRS restrictions depending on whether accelerated depreciation was previously claimed — a rule this calculator’s side-by-side comparison doesn’t check.
How to use this calculator
- Enter business miles driven and the applicable mileage rate.
- Enter total actual vehicle expenses and business-use percentage.
Frequently asked questions
Can I switch between methods every year?
Generally only if the standard mileage method was used in the first year the vehicle was placed in business service — choosing actual expenses first can permanently restrict switching to standard mileage later for that vehicle.
Why did the mileage rate change mid-year in 2026?
The IRS issued a rare mid-year adjustment, raising the rate from 72.5 to 76 cents per mile effective July 1, 2026, due to rising fuel and vehicle costs — mileage driven before and after that date should use the applicable rate for each period.
Does the standard mileage rate include parking and tolls?
No — business-related parking fees and tolls can be deducted separately in addition to the standard mileage rate.
