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Business Vehicle Deduction Calculator (2025)

Compare the IRS standard mileage rate (70¢/mile) vs. actual expenses method to find which vehicle deduction saves you more on taxes.

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Best Deduction

$10,500

$10,500

Best Deduction

Standard Mileage

$10,500

Tax Savings

$2,310

Business Use %

75.00%

Summary

The Standard Mileage method gives the best deduction of $10,500, saving $2,310 in taxes.

The 2025 IRS standard mileage rate is 70¢ per mile. At 15,000 business miles, that's $10,500.

The Standard Mileage method gives you a higher deduction of $10,500, saving $2,310 in taxes.

Your vehicle is used 75.00% for business. Only the business-use portion of actual expenses is deductible.

You cannot switch from actual expenses to standard mileage on the same vehicle after the first year. Choose carefully.

Standard (70¢/mi)$10,500
Actual Expenses$9,600

Deduction Comparison

6 rows

ItemAmount
Standard Mileage (15,000 mi × 70¢)$10,500
Gas & Fuel$2,250
Insurance$1,350
Maintenance$750
Depreciation$5,250
Actual Total$9,600

Estimate based on IRS standard mileage rates and actual expense method. Luxury vehicle limits and listed property rules may apply. Not tax advice.

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