For 2026 the IRS business mileage rate is 72.5 cents per mile for January 1 to June 30 and 76 cents per mile from July 1, after a mid-year increase for fuel costs. 18,500 miles split evenly is worth a $13,745 deduction, which saves a gig driver about $2,790 in tax.
Saves about $2,790 in tax in the example.
Show the math
| Gig earningsSchedule C, line 1 | $42,000 |
| Mileage deductionSchedule C, line 9 (72.5¢ and 76¢ a mile) | −$13,745 |
| Other business expensesSchedule C | −$900 |
| Net profitSchedule C, line 31 | $27,355 |
| Self-employment taxSchedule SE (15.3% of 92.35% of profit) | $3,865 |
| Half of self-employment taxSchedule 1 adjustment | −$1,933 |
| Adjusted gross incomeForm 1040 | $25,422 |
| Standard deductionForm 1040 | −$16,100 |
| Tips deductionSchedule 1-A (up to $25,000) | −$11,500 |
| Business income deductionForm 8995 (QBI) | −$0 |
| Taxable incomeForm 1040 | $0 |
| Federal income tax2026 tax brackets | $0 |
| Texas income taxNo state income tax | $0 |
| Total tax | $3,865 |
An estimate for planning, not tax advice. See how we calculate and our verified examples.
72.5 vs 76 cents per mile: two rates in 2026
The IRS set the 2026 rate at 72.5 cents in January, then raised it to 76 cents for miles driven from July 1, 2026, the first mid-year change since 2022. Enter your miles for each half of the year separately.
Why mileage saves so much
The mileage deduction lowers your net profit, so it cuts both self-employment tax and income tax. For many drivers it’s the largest deduction they have.
Standard rate or actual Schedule C car expenses
You can deduct the standard mileage rate or your actual car costs (gas, repairs, insurance, depreciation), not both. If you use the standard rate, you must choose it in the first year you use the car for business.
What your mileage log needs
- Date of each trip or shift
- Miles driven for business
- Where you went or the purpose
- Your odometer readings at the start and end of the year
A mileage app or a notebook both work, as long as you record miles at the time.
More calculators
- 1099 Tax Calculator 2026
- Self-Employment Tax Calculator 2026
- Quarterly Tax Calculator 2026
- No Tax on Tips Calculator 2026
Mileage deduction calculator questions
What is the IRS mileage rate for 2026?
72.5 cents per mile for business miles driven January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026.
Can I deduct gas if I take the mileage rate?
No. The standard mileage rate already covers gas, maintenance, insurance and depreciation.
Do miles to my first pickup count?
Miles driven while working, including to pickups and between orders, generally count. Driving from home to where you usually start may be commuting.
How much does the mileage deduction save?
It lowers net profit, so it saves self-employment tax (about 14.1 cents per dollar deducted) plus income tax at your bracket.