Mileage Deduction Calculator: What Your Business Miles Are Worth
Working out a mileage deduction is one multiplication: business miles times the rate for the tax year. The table below does the arithmetic for common mileage totals so you can see roughly what you're owed.
The formula
Deduction = business miles × standard rate for the tax year.
Only miles driven for work count — your commute and personal trips don't. So the real work isn't the maths, it's having a trustworthy count of your business miles.
What your miles are worth (US, standard rate)
Estimated deduction by business miles
| Business miles | 2025 ($0.70/mi) | 2026 ($0.67/mi) |
|---|---|---|
| 5,000 | $3,500 | $3,350 |
| 10,000 | $7,000 | $6,700 |
| 15,000 | $10,500 | $10,050 |
| 20,000 | $14,000 | $13,400 |
| 25,000 | $17,500 | $16,750 |
The deduction lowers your taxable income; your cash saving is the deduction times your marginal tax rate. A $10,500 deduction at 22% is roughly $2,310 less tax.
This is an estimate for the standard mileage method using the US business rate. Rates change yearly, other countries quote per kilometre, and your final number depends on your tax situation. Confirm the current rate on IRS.gov and check with your accountant.
Getting the miles right
A calculator is only as good as the mileage you feed it, and estimating from memory almost always undercounts — the short pickups and detours are exactly the ones you forget. Milvo captures your drives in the background, keeps a running deduction total as you sort each one business or personal, and exports the underlying log so the number has records behind it, not a guess.
Frequently asked questions
How do I calculate my mileage deduction?
Multiply your total business miles for the year by the standard rate for that tax year ($0.70/mile for 2025 in the US). Personal miles are excluded. The result is the amount you deduct from your business income.
Is the deduction the same as money in my pocket?
No — a deduction lowers your taxable income, so your actual saving is the deduction multiplied by your tax rate. A $7,000 deduction at a 24% rate saves about $1,680 in tax.
What counts as a business mile?
Miles driven for work: to clients, between job sites, to pickups and deliveries, or from a home office to a work location. Commuting to a regular workplace and personal errands don't count.
Do I need to keep proof of the miles?
Yes. The calculation is easy; the records are what matter if you're audited. Keep a dated log showing the miles, purpose and destination of each business trip.