CashoutTools / Mileage calculator
Mileage deduction calculator
The IRS raised the 2026 rate partway through the year. Enter your work miles for each half and see your deduction and what it saves.
As a W-2 employee you can't deduct unreimbursed mileage on your federal return. Track it anyway if you also do 1099 work.
The 2026 rates
| Miles driven | Rate |
|---|---|
| January 1, 2026 to June 30, 2026 | 72.5 cents a mile |
| July 1, 2026 to December 31, 2026 | 76 cents a mile |
The IRS announced the higher rate in July 2026 because of fuel prices. Use the rate for the date you drove.
Who can deduct mileage
If you're self-employed, such as a delivery driver, a contractor bartender, or a server with a catering side gig, you can deduct business miles on Schedule C. That lowers both income tax and self-employment tax, which is why a mile is worth more to a 1099 worker than most people expect.
If you're a W-2 employee, unreimbursed driving for work isn't deductible on your federal return. Driving between home and your regular job is commuting and never counts for anyone.
What counts as a business mile
- Driving from one job site to another during the day, such as between catering events.
- Delivery runs, from the restaurant to the customer and back.
- Trips for supplies or to pick up equipment for your business.
The IRS expects a record made at the time: the date, miles, where you went and why. A log written from memory in April is the first thing an auditor questions. Cashout logs trips with your shifts, or use our free tip log template and add a miles column.
