About this calculator
For most self-employed people the standard mileage rate is the better choice, and often by a wide margin. It requires no records, and it is at or above what your own numbers produce because it already folds in depreciation, maintenance, and insurance.
How it works
Actual expenses are only worthwhile if you drive a lot for business and keep detailed records, because they include a vehicle depreciation component that people often forget. The calculator shows both sides, and adds the tax benefit of the deduction, since a deduction lowers both income tax and self-employment tax.
Frequently asked questions
What is the standard mileage rate?
The IRS sets the standard mileage rate each year by regulation. Enter the current published rate here. It applies to business, medical, and charitable mileage, and is not increased for a newer vehicle.
Is the standard mileage rate always better?
Usually. It reflects average vehicle operating costs including depreciation, and requires no substantiation. Actual expenses can win if you drive many business miles and the car is expensive to run.
Can I deduct commuting miles?
No. Travel from home to a regular workplace is a personal commute and is not deductible. Travel between client sites, or from home to a client you meet, is deductible.
What counts as a business mile?
A mile is deductible when the primary purpose of the trip is business. If you combine purposes, the business portion counts. Keep a mileage log showing date, destination, and purpose.
Do I need a separate vehicle for business?
No. The restriction that once required a second vehicle for business use was lifted in 2017, so a personal vehicle can be used for business without penalty.
Does the mileage deduction reduce self-employment tax?
Yes. A deduction from net profit reduces the base subject to self-employment tax, so each $100 of mileage saves about $15.30 in SE tax in addition to the income tax saving at your marginal rate.