The standard mileage rate changed mid-2026, so the calculator takes January to June and July to December miles separately. It then shows the deduction and roughly what it saves you in federal tax.
Parking and tolls are deductible on top. Commuting miles never count. Keep a log with the date, destination, purpose and miles for every trip.
Standard mileage replaces gas, insurance, repairs, depreciation and lease payments with one rate per business mile. You can still deduct parking and tolls on top. Actual costs means tracking every car expense and taking the business-use share; it can win for expensive cars driven mostly for work.
If you want the standard rate you must use it in the first year the car is used for business. Switching later is restricted, so pick deliberately.
Miles between work stops count: client to client, shop to supplier, home to a client if your home is your principal place of business. The daily drive from home to one regular workplace is commuting and never counts.
For rideshare and delivery drivers, miles with the app on and a trip or delivery in progress clearly count; miles repositioning between zones are usually deductible too. Keep the log: date, destination, purpose, miles.
The IRS disallows mileage without contemporaneous records more often than any other small-business deduction. A log kept as you go, even a text to Toozi saying "12 miles to Julie's," is what survives an audit.
Text your income and expenses as they happen. Toozi keeps the books, sets aside the right amount from each payment, texts you before every due date, and e-files the return.
The IRS set the business rate in December 2025 and then revised it effective July 1, 2026 because of fuel costs. Miles before and after that date are valued at different rates, so the calculator asks for both.
Not both for the same car. The standard rate already includes fuel. Parking and tolls are deductible in addition under either method.
Reconstruct from calendars, invoices and map history as soon as possible, and start logging today. Toozi logs a trip from a single text and keeps the running total.
Text (844) 482-4881 and your first expense is logged in 10 seconds.