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Mileage Rate & Tax Deduction Calculator

Calculate your potential tax savings with IRSCRA mileage rates from 2020–2026

Where do you file taxes?

Tax year

km
0 40,000 80,000

Your estimated deduction

$11,180

at 73¢/km + 67¢/km (2026 CRA rate)

Per month average

$932

Tax savings (29%)

$3,242

Forgot to track your trips?

Your phone's location history can help you recover past mileage—even trips from months ago. Learn how to reconstruct your mileage log.

Learn How to Recover Past Mileage

How the deduction works

1

Track Business Kilometers

OdoAlibi automatically logs every business trip—client visits, supply runs, job site travel.

2

Calculate at Current Rates

The 2026 CRA rate is 73¢/km for the first 5,000 km, then 67¢/km after that.

3

Maximize Your Deduction

Export compliant reports for your T2125 (Canada) or Schedule C (US) with one click.

CRA Compliant: OdoAlibi automatically generates logbooks with dates, destinations, purposes, and distances—exactly what the CRA requires.

How Mileage Tax Deductions Work

If you drive for business, you may be able to deduct the cost of those miles on your tax return. The IRSCRA publishes standard mileage rates each year that let self-employed individuals, freelancers, and business owners claim a per-mile or per-kilometer deduction instead of tracking actual vehicle expenses.

For 2026, the IRS standard mileage rate is 72.5 cents per mile for business use. This rate is designed to cover gas, insurance, depreciation, and maintenance.For 2026, the CRA rate is 73 cents per kilometer for the first 5,000 km, and 67 cents per kilometer after that. These rates are designed to cover gas, insurance, depreciation, and maintenance.

To claim the deduction, you need a contemporaneous mileage log—a record of each business trip including the date, destination, business purpose, and distance driven. The IRSCRA requires this documentation in case of an audit. Use our free mileage log template to create a compliant record, or let OdoAlibi track your trips automatically.

Who can claim the mileage deduction?

  • Self-employed individuals — freelancers, consultants, gig workers, contractors
  • Small business owners — driving between offices, job sites, or client meetings
  • Sales professionals — traveling to prospects and customers
  • Delivery drivers — rideshare, courier, and food delivery services
  • Medical and charitable driving — at lower per-mile rates (IRS only)

IRSCRA Mileage Rates by Year

Year IRS Rate (per mile) CRA Rate (per km)
202672.5¢73¢ / 67¢ after 5,000 km
202570¢72¢ / 66¢ after 5,000 km
202467¢70¢ / 64¢ after 5,000 km
202365.5¢68¢ / 62¢ after 5,000 km
202258.5¢ / 62.5¢ (Jul–Dec)61¢ / 55¢ after 5,000 km
202156¢59¢ / 53¢ after 5,000 km
202057.5¢59¢ / 53¢ after 5,000 km

Ready to Simplify Your Tracking?

Download OdoAlibi today and start tracking your mileage, expenses,
and time effortlessly.