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Vehicle Tax Deduction Calculator

Compare standard mileage rate vs actual vehicle expenses.
Find which method gives you a bigger tax deduction.

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Vehicle Deduction Comparison

Two methods for deducting vehicle expenses used for business:

Standard Mileage Rate (2024):

  • Business: 67 cents per mile
  • Medical/moving: 21 cents per mile
  • Charity: 14 cents per mile
  • Plus parking fees and tolls

Actual Expense Method:

  • Gas and oil
  • Repairs and maintenance
  • Insurance
  • Depreciation
  • Registration fees
  • Lease payments
  • Multiply total by business use percentage

Which is better?

  • Standard mileage: Simpler, often better for fuel-efficient cars
  • Actual expenses: Often better for expensive vehicles or high costs

Rules:

  • Must use the car for business purposes
  • Must keep a mileage log or expense records
  • Cannot switch methods on a leased vehicle

You must choose one method per vehicle per year. Consult a tax professional for best strategy.


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