Tax ยท Free tool
Vehicle Deduction Calculator
Compare the IRS standard mileage rate against actual vehicle expenses to find your larger deduction.
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Aligned with IRS guidance
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Business use %60.0%
Standard mileage deduction$8,400.00
Actual expense deduction (business portion)$5,280.00
Better method: Standard mileage$8,400.00
How it works
The IRS lets you deduct business vehicle costs one of two ways: the standard mileage rate ($0.70/mile in 2025) times business miles, or the actual-expense method, track every cost and multiply by business-use %.
You must choose the standard method the first year you place the car in service if you want the option to switch later. Leased vehicles are locked in for the life of the lease. Track a mileage log either way, the IRS requires contemporaneous records.
Examples
12,000 business miles, low expenses
Standard = $8,400 usually beats actual for older or fuel-efficient vehicles.
Luxury SUV with high expenses
Actual method (with depreciation limits) often wins for pricier vehicles.
Frequently asked questions
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