The 2026 IRS standard mileage rate is $0.725/mile. On 15,000 business miles, that is a $10,875 deduction with zero receipts needed. The actual expense method can be higher for expensive or fuel-inefficient vehicles, but requires tracking every gas, repair, and insurance receipt and prorating by business-use percentage.
Every gig worker who uses a personal vehicle for business must choose between the IRS standard mileage rate and the actual expense method. The choice can change your tax bill by thousands of dollars — and once you choose actual expenses for a vehicle, switching back has restrictions.
Based on IRS Schedule C and Publication 334. General information only — not tax advice.
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Calculate My Deductions →| Net Income | SE Tax | Federal Tax | Total Est. |
|---|---|---|---|
| 5,000 miles | $3,625 | — | $3,625 deduction |
| 10,000 miles | $7,250 | — | $7,250 deduction |
| 15,000 miles | $10,875 | — | $10,875 deduction |
| 20,000 miles | $14,500 | — | $14,500 deduction |
“If you use a car for business purposes, you can deduct car expenses using one of two methods: actual car expenses or the standard mileage rate.” — IRS.gov — Self-Employed Tax Center