Mileage deduction calculator (IRS) & CRA vehicle expense estimator
Estimate your IRS standard mileage deduction or calculate self-employed vehicle expenses for CRA using official rates and methods.
Mileage deduction estimate
Estimate your business vehicle deduction. For the US: IRS standard mileage. For Canada: actual expenses × business-use percentage (self-employed) or employer allowance check. This is an estimate, not tax advice.
IRS standard mileage rates
The IRS standard business mileage rate for 2025 is 70¢/mile. For 2026, the rate is 72.5¢/mile for miles driven Jan 1–Jun 30 (IRS Notice 2026-10, IR-2025-128) and 76¢/mile for miles driven Jul 1–Dec 31 (IRS Announcement 2026-11, IR-2026-29). The mid-year increase was made in response to rising fuel prices. See irs.gov/tax-professionals/standard-mileage-rates and IRS IRB 2026-29.
Canada: self-employed vehicle expenses
Self-employed individuals in Canada deduct actual vehicle expenses on Form T2125 (Statement of Business or Professional Activities). Calculate: (business km ÷ total km) × total operating expenses, plus business parking and supplementary business insurance in full. Operating expenses include fuel, insurance, licence/registration, maintenance, repairs, interest, leasing costs, and EV electricity. Report on T2125 Chart A line 9281. Capital cost allowance (CCA) is separate on line 9936. See canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/motor-vehicle-expenses-including.html and T4002 Chapter 3.
CRA employer allowance rates
The CRA's per-km rates (2026: 73¢ first 5,000 km, 67¢ after; add 4¢ in NT/NU/YT) are the reasonable allowance rates employers may pay employees tax-free under Income Tax Regulations s.7306. These are NOT self-employed deduction rates. If you're self-employed, you claim actual costs × business-use percentage as described above. See canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-allowances.html
Requirements for a valid log
To claim these deductions, the IRS requires a contemporaneous log. You must record the date, business miles, destination, and business purpose for every trip, ideally updated at least weekly. TradesTimer helps by automatically reconstructing these trips from your GPS data.
Important tax rules
For the IRS, you must elect the standard mileage rate in the first year a car is used for business. Please note: This tool provides estimates for planning purposes and is NOT tax advice. Always consult a professional for your specific tax situation.
FAQ
How often should I update my mileage log?
The IRS recommends keeping records contemporaneously, which means updating your log at least weekly.
Does this tool calculate my actual taxes owed?
No, this tool only estimates the mileage deduction amount based on distance and official rates. It is not a tax filing service.
Did the 2026 IRS rate change mid-year?
Yes. The IRS increased the business mileage rate to 76¢/mile for miles driven on or after July 1, 2026 (Announcement 2026-11, IR-2026-29). The rate was 72.5¢/mile for Jan 1–Jun 30 (Notice 2026-10).
What are the CRA mileage rates for territories?
For 2026, territories (NT, NU, YT) add 4¢/km to the base employer allowance rate, making it 77¢/km for the first 5,000 km and 71¢/km after. These are employer allowance rates, not self-employed deduction rates.
Can I use the CRA per-km rates if I'm self-employed?
No. The CRA's per-km rates are employer allowance rates only. If you're self-employed, you must deduct actual vehicle expenses × (business km ÷ total km) on T2125, not a per-km rate.
Related
- TradesTimer for hvac technicians
- TradesTimer for mobile mechanics
- How do I track mileage for taxes when I’m self-employed?
- What does the IRS require in a mileage log?
Last updated 2026-11-04. Estimates only — not tax or accounting advice.
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