There are two ways to deduct the cost of using a vehicle for business: the standard mileage rate, a flat per-mile amount set by the IRS (72.5¢ for 2026), or your actual vehicle expenses like gas, insurance, repairs, and depreciation, prorated for business use. You generally have to pick one. This calculator helps you model which approach is likely more favorable for your situation.
Bigger deduction by $0, worth about $0 more in tax savings.
Planning estimate. Verify against actual brackets, QBI limits, and SE-tax detail before filing.
Depreciation is already baked into the 72.5¢ rate, so don't add it again on the standard side. Parking & tolls are deductible under both methods, so they're excluded here.
To use the standard rate, you must elect it in the vehicle's first business-use year (and keep it for the full term on a leased vehicle).
Important: these are rough, illustrative numbers
This tool is a simplified illustration of how the two vehicle-deduction methods generally compare. It does not account for every variable in your situation. Things like depreciation recapture, §179 and bonus depreciation, lease inclusion amounts, prior-year method elections, multi-state treatment, and income phase-outs can all change the answer. It is not tax advice and should never be relied on to file a return. Before making a decision, please talk with a CPA who can build out the true, fully modeled scenario for your specific facts.
Illustration only · not tax advice · figures reflect 2026 federal rates.
