How the mileage deduction works
1
Separate business miles
Only miles driven for work purposes are included in the deduction.
2
Apply the IRS rate
For 2026, the IRS used a midpoint-rate schedule, with different rates in the first and second half of the year.
3
Estimate deduction value
The miles are multiplied by the appropriate rate to estimate your tax-advantaged deduction.
4
Review your tax benefit
The result is an estimate of how much the deduction may reduce your overall taxable income.
Worked example
| Line item | Amount |
|---|---|
| Business miles, Jan-Jun | 8,000 |
| Business miles, Jul-Dec | 7,000 |
| Jan-Jun value | $5,800 |
| Jul-Dec value | $5,320 |
| Total estimated deduction | $11,120 |