PiggyMileage vs Actual Car Expenses
See whether the IRS standard mileage rate or actual expenses gives the larger business deduction for your cars and miles.
How this is calculated
Standard mileage = business miles × the 2026 rates (72.5¢ Jan–Jun, 76¢ Jul–Dec). Actual = (gas + insurance + repairs + other + depreciation) × business-use percentage. Switching after claiming depreciation on a vehicle is restricted.
Miles & costs
Standard vs actual
Which method usually wins
High-mileage, efficient cars often favour the standard rate. Newer vehicles with large depreciation or heavy repair years can favour actual expenses. Use the mileage deduction calculator when you already know you will use the standard rate.
One-vehicle rule of thumb
Once you claim depreciation (including §179) under the actual method on a vehicle, you generally cannot switch that vehicle to standard mileage later. Lease rules also differ.
Frequently asked questions
Can I use both methods in the same year?
Why two mileage rates in 2026?
Does loan interest go here?
Sources
Every formula on this page is checked against an independent implementation before publication. How we check our math →