A contractor with 4,200 business miles before July and 5,800 after June has a $7,453 rate-based deduction. The 2026 IRS business rate rose from 72.5¢ to 76¢ on July 1, so a single annual rate gives the wrong answer.
Put each drive in the half of the year when it happened. A June 30 visit to a client uses 72.5¢; a July 1 supply run uses 76¢. The IRS published the later rate in Announcement 2026-11. Do not apply 76¢ to the whole year.
The IRS rate table gives the cents-per-mile amounts. It does not decide whether a particular drive is deductible. Write down why the drive happened before relying on any calculation.
How this worksheet works
Multiply first-half business miles by $0.725 and second-half business miles by $0.76, then add them. The optional tax-rate field gives only a rough illustration of possible tax effect. A $7,453 deduction is a reduction in taxable income, not a $7,453 refund.
Worked example
Jan–Jun: 4,200 miles
$3,045.00
Jul–Dec: 5,800 miles
$4,408.00
Combined rate-based amount
$7,453.00
Keep the records behind the number
Keep the date, destination, business purpose and miles for each drive. A monthly total without trips behind it is weak evidence. Milevaro exports the trips you actually logged; it does not certify your return.
72.5 cents per business mile for January 1 through June 30, 2026; 76 cents for July 1 through December 31, 2026.
Is this a tax deduction or cash back?
A deduction generally reduces taxable income. The amount shown here is not a refund or guaranteed tax savings.
Are my entries uploaded?
No. This worksheet runs in your browser. Download or print a copy if you want to keep it.
Does this worksheet prove my miles to the IRS?
No. Keep underlying dates, destinations, purposes, mileage records and receipts. Ask a qualified tax professional about your facts.
Drive every week?
Milevaro records trips you start with one tap and exports CSV or PDF reports. Every feature is free for 14 days; then $39.99/year or $3.99/month. Existing trips remain viewable and CSV export stays free if you do not subscribe.
Milevaro reports are records of trips logged by the user. They are not IRS-certified and do not guarantee a tax deduction. A deduction lowers taxable income; it is not direct cash back. The estimated deduction is business miles multiplied by a user-set rate and is an estimate, not tax advice. Consult a qualified tax professional.