Question 1

How do I calculate my mileage deduction?

Accepted Answer

Select your region (US or Canada) at the top, then enter total business distance driven. The calculator applies the appropriate IRS or CRA rate to show your deduction.

Question 2

What are the 2026 mileage rates?

Accepted Answer

US (IRS): 72.5¢ per mile for business miles driven Jan 1 – Jun 30, 2026, and 76¢ per mile from Jul 1 – Dec 31, 2026 (the IRS raised the rate mid-year). Canada (CRA): 73¢/km for the first 5,000 km, then 67¢/km for additional kilometres. Yukon, Northwest Territories, and Nunavut add an extra 4¢/km.

Question 3

Why are there two IRS rates for 2026?

Accepted Answer

The IRS set the 2026 business rate at 72.5¢/mile in December 2025, then raised it to 76¢/mile effective July 1, 2026 in response to rising driving costs. On your tax return, miles driven in each half of the year are multiplied by that half's rate — so keep your log split by date.

Question 4

What's the difference between the standard mileage rate and actual expense method?

Accepted Answer

Standard mileage rate (used here) applies a flat per-distance rate. The actual expense method tracks all vehicle costs (gas, insurance, repairs, depreciation) and claims the business-use percentage. Use whichever gives you a larger deduction.

Question 5

Do I need to keep a mileage log?

Accepted Answer

Yes. Both the IRS and CRA require a mileage log recording the date, destination, purpose, and distance of each business trip. Keep records for at least 3 years (IRS) or 6 years (CRA).

Question 6

Can I deduct my commute to the office?

Accepted Answer

No. Driving from home to a regular workplace is considered personal commuting in both the US and Canada. However, trips from a home office to client sites, meetings, or temporary work locations are deductible.