Short answer: For 2026 the IRS business rate is 72.5¢ a mile through June 30 and 76¢ from July 1 (IRS Announcement 2026-11). 120 business miles a week for 48 weeks, half in each part of the year, is a $4,277 deduction, worth about $1,283 at a 30% combined tax rate. Rate details: IRS Mileage Rate 2026: 72.5¢, Then 76¢ From July 1.
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Business miles per year120 × 48 weeks = 5,760
- Miles before July 1 (50%)2,880 × 72.5¢ = $2,088.00
- Miles from July 1 (50%)2,880 × 76¢ = $2,188.80
- Mileage deduction$2,088.00 + $2,188.80 = $4,277 (average 74.25¢)
- Tax saved at 30%$4,276.80 × 30% = $1,283
- Per month and per mile$107 a month · $0.22 a mile
How this calculator works
The standard mileage rate turns business miles into a deduction without tracking gas receipts. It covers gas, oil, repairs, tires, insurance, registration and depreciation; business parking and tolls are deducted on top (IRS Topic 510: Business use of car).
2026 is unusual: the IRS set the rate at 72.5¢ in January (IRS), then raised it to 76¢ for miles driven on or after July 1 because of higher fuel prices. The calculator applies 72.5¢ to the share of miles you drove before July 1 and 76¢ to the rest. If you drove about the same all year, leave the split at 50%.
Tax saved is the deduction times your combined rate (self-employment tax plus income tax), because the deduction lowers the profit both are figured on. Use the self-employment tax calculator to find your rate.
Which freelance miles count
- Driving to meet clients or to a client's site.
- Trips between job sites or to a temporary work location.
- Errands for the business: supplies, the bank, the post office.
- If your home office is your main place of business, trips from home to clients generally count too (IRS Publication 463).
- Not your commute to a regular office or coworking desk, and not personal stops on the way.
2026 mileage deduction by business miles
| Business miles | All before July 1 (72.5¢) | All from July 1 (76¢) | Half and half | Tax saved at 30% |
|---|---|---|---|---|
| 1,000 | $725 | $760 | $742 | $223 |
| 2,000 | $1,450 | $1,520 | $1,485 | $445 |
| 4,000 | $2,900 | $3,040 | $2,970 | $891 |
| 5,000 | $3,625 | $3,800 | $3,712 | $1,114 |
| 6,000 | $4,350 | $4,560 | $4,455 | $1,337 |
| 8,000 | $5,800 | $6,080 | $5,940 | $1,782 |
| 10,000 | $7,250 | $7,600 | $7,425 | $2,227 |
| 12,000 | $8,700 | $9,120 | $8,910 | $2,673 |
| 15,000 | $10,875 | $11,400 | $11,137 | $3,341 |
| 20,000 | $14,500 | $15,200 | $14,850 | $4,455 |
Tax saved uses the half-and-half deduction and a 30% combined tax rate. Parking and tolls are extra.
Worked examples
Photographer who started in July
Drives 60 business miles a week to shoots for 22 weeks, all after July 1, with a 25% combined tax rate.
| Result | |
|---|---|
| Deduction | $1,003 |
| Tax saved | $251 |
| Rate used | 76¢ for every mile |
Contractor on the road all year
250 business miles a week between job sites and supply runs for 50 weeks, half before July 1, at a 35% combined rate.
| Result | |
|---|---|
| Business miles | 12,500 |
| Deduction | $9,281 |
| Tax saved | $3,248 |
Using your result
Your log is what makes the number real. Record the date, where you went, why and the miles for every business trip, or use an app that records drives automatically. For 2026, make sure the log shows which miles were driven before and after July 1.
Add parking and tolls for business trips separately; they aren't part of the rate. Then subtract the deduction from your profit in the self-employment tax calculator to see the new tax bill.
What it doesn't cover
- For a car you own, you generally have to use the standard rate in the first year the car is used for business to keep it as an option later (IRS Topic 510: Business use of car). Compare methods with the standard mileage vs. actual expenses calculator.
- Employees generally can't deduct unreimbursed mileage.
- The tax saved is an estimate at the rate you enter, not a bracket calculation.
- You need a log with the date, miles and business purpose of each trip.
Read more
- IRS Mileage Rate 2026: 72.5¢, Then 76¢ From July 1
- Self-Employed Tax Deductions: What Freelancers and Gig Workers Miss
Frequently asked questions
What is the IRS mileage rate for 2026?
72.5¢ a mile for business miles driven January 1 through June 30, 2026, and 76¢ for miles driven from July 1, 2026 (IRS Announcement 2026-11).
How much is 10,000 business miles worth?
$7,250 at 72.5¢, $7,600 at 76¢, or $7,425 if you drove half in each part of 2026. At a 30% combined tax rate that saves about $2,227.
I drove both before and after July 1. Which rate do I use?
Both. Add up the miles for each part of the year from your log and multiply each by its rate. In the calculator, set the share of miles driven July 1 or later.
Can I deduct driving to my office?
Not your regular commute. Driving from home to a regular office or coworking space is personal. Trips from your office to clients, or from a home office that's your main place of business, generally count.
Do I need a mileage log?
Yes. The IRS expects the date, miles and business purpose of each trip, written at or near the time. With two rates in 2026, the dates also decide which rate applies.
Can I deduct parking and tolls too?
Yes. Business parking fees and tolls are deducted separately, on top of the standard mileage rate (IRS Topic 510). Parking at your regular workplace isn't deductible.
Sources
- IRS: 2026 business standard mileage rate (January announcement)
- IRS Announcement 2026-11 (Internal Revenue Bulletin 2026-29): 76¢ from July 1, 2026
- IRS Topic 510: Business use of car
- IRS Publication 463: Travel, gift and car expenses
Reviewed against IRS sources: October 2026 · Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice.