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Mileage Deduction Calculator

Every drive to a thrift store, an estate sale, the post office or the supply store is a business mile. Enter your miles, or estimate them from your weekly routine, and see what they're worth at the IRS rate. It runs in your browser, and nothing you type is sent anywhere.

Your driving

Your deduction

Enter your business miles, or estimate them below.
Mileage deduction
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Rate used
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Miles × rate
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Parking and tolls
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Estimated tax saved
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Tax saved per business mile
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Don't know your miles? Estimate them

Most resellers drive the same loop every week. Describe yours and use the estimate as your starting point. For your tax return, keep a real log of each trip.

— a year  

How the mileage deduction works

With the standard mileage rate, you don't add up gas receipts. You multiply your business miles by the IRS rate for the year, then add any business parking fees and tolls.

Mileage deduction = business miles × IRS rate + parking and tolls

Tax yearIRS business rate1,000 business miles are worth
202672.5¢ a mile$725
202570¢ a mile$700
202467¢ a mile$670

The deduction lowers your taxable profit, not your tax bill dollar for dollar. What you actually save is roughly the deduction times your tax rate.

A worked example

Example. You drive 8 miles each way to the thrift stores, three times a week, for 50 weeks. That's 16 × 3 × 50 = 2,400 business miles.

At the 2026 rate: 2,400 × $0.725 = $1,740 deduction. At a 25% tax rate, that saves about $435. Post office runs and supply trips come on top.

Which trips count for a reseller

  • Sourcing: thrift stores, estate sales, yard sales, flea markets, auctions, bins.
  • Shipping: dropping off orders at the post office, UPS or a drop box.
  • Supplies: buying boxes, mailers, tape or cleaning supplies.
  • Business errands: the bank for business deposits, meeting a local buyer.

If your home is your main place of business, trips from home to these places usually count. Personal stops don't. If you mix them, count only the business part. Rules depend on your situation, so check with a tax professional if you're unsure.

What to write down for each trip

The IRS expects a log kept at or near the time of each trip, not rebuilt from memory in April. For each trip, record:

  • the date
  • where you went
  • why (the business reason, such as "sourcing" or "shipping orders")
  • the miles, typed in or from odometer readings

Standard rate or actual car expenses?

The standard rate is simple and is what most small sellers use. It already covers gas, repairs, insurance and wear on the car, so you can't deduct those as well. Parking and tolls still count.

With actual car expenses, you add up your real car costs for the year and deduct your business share of them: business miles divided by total miles. It takes more record-keeping and only pays off if your car is expensive to run. Either way, you still need the mileage log.

Common questions

What is the IRS mileage rate for 2026?

72.5 cents per business mile. It was 70 cents for 2025 and 67 cents for 2024.

Can I deduct gas as well as mileage?

Not with the standard mileage rate, which already includes gas. Business parking and tolls can be deducted on top.

Do trips to the post office count?

Usually, yes, when the trip is for the business, such as dropping off orders. If you also run a personal errand, only the business part counts.

Do I need a mileage log?

Yes. Record the date, where you went, why and the miles for each trip, at or near the time you drive. A spreadsheet or an app both work.

How much tax does it save?

Roughly the deduction times your tax rate. For many self-employed sellers that's 25% to 30%, so each business mile at 72.5 cents saves very roughly 18 to 22 cents.

For information only, not tax advice. Rates from IRS announcements, checked October 2026.

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