Mileage Deduction Calculator 2026: IRS Tax Savings for Reseller Driving
Calculate reseller tax savings with IRS 2026 split-year rates: 72.5¢ Jan-Jun and 76¢ Jul-Dec. Track sourcing and shipping trips.
Optional: Compare to Actual Costs
2026 Split-Year Deduction
1125 business miles at $0.725
1125 business miles at $0.760
Tax Savings Breakdown
Every business mile saves you $0.27 in taxes. SE tax savings applies to Schedule C self-employed filers.
Standard Mileage vs Actual Expenses
Simple: miles x IRS rate. No receipts needed for vehicle expenses.
Gas + maintenance + insurance + depreciation. Requires documentation.
Which is better? For most resellers, standard mileage wins. It is simpler and often higher. Actual expenses only beat standard for expensive vehicles with high business use.
Mileage Log Entry Template
App options: MileIQ, Stride, or Everlance auto-track via GPS
Required fields: Date, destination, business purpose, miles driven
Business-purpose trips count: Document the date, destination, purpose, and miles; commuting and personal errands do not count
Post office runs count: Shipping supplies, package drop-offs = business miles
IRS Mileage Deduction Rules
Source check: IRS standard mileage rates reviewed Aug. 6, 2026. Business miles are 72.5 cents per mile for Jan. 1-Jun. 30, 2026 and 76 cents per mile for Jul. 1-Dec. 31, 2026.
What Counts as Business Miles
- Thrift store, garage sale, estate sale trips
- Post office/shipping runs
- Sourcing from liquidation warehouses
- Meeting buyers for local sales
What Does Not Count
- Regular commute (if you have a day job)
- Personal errands combined with business
- Trips without documented purpose
IRS business mileage rate history used by this calculator
Source checked 2026-08-06. Apply the rate for the period when documented business miles were driven.
| Year | Effective period | Business rate | Use |
|---|---|---|---|
| 2026 | Jul. 1-Dec. 31 | 76.0¢ per mile | Business |
| 2026 | Jan. 1-Jun. 30 | 72.5¢ per mile | Business |
| 2025 | Full year | 70.0¢ per mile | Business |
| 2024 | Full year | 67.0¢ per mile | Business |
| 2023 | Full year | 65.5¢ per mile | Business |
| 2022 | Full year | 62.5¢ per mile | Business |
How to Use This Tool
Enter the number of sourcing trips you make each week, the average round-trip miles per outing, and how many active weeks you source per year. The calculator multiplies these out, applies the current IRS rate, and shows your total annual deduction, estimated tax savings, and a monthly breakdown.
Use the Quick Presets as a starting point if you are unsure of your averages. Part-Time (3 trips/week, 15 miles, 48 weeks) is a common estimate for resellers sourcing on weekends.
If your vehicle is shared between personal and business use, set the business-use percentage to the actual fraction of miles driven for reselling. For a dedicated sourcing vehicle, 100% is appropriate.
What This Calculator Includes
- IRS Standard Mileage Deduction - annual deduction at the selected IRS period rate, including the 2026 mid-year split
- Income Tax Savings - the deduction reduces your taxable income dollar-for-dollar at your marginal bracket
- Self-Employment Tax Savings - for Schedule C filers, reducing net profit also reduces the 15.3% SE tax liability (applied to 92.35% of net)
- Monthly Breakdown - deduction and tax savings spread across 12 months for cash-flow planning
- Standard vs. Actual Cost Comparison - estimates real vehicle costs for context when gas price and MPG are entered
This tool calculates the standard mileage rate method only. It does not account for Section 179 or bonus depreciation. Consult a tax professional for your specific situation.
Common Mistakes
Not tracking in real time. Keep a mileage log as trips happen, with date, destination, business purpose, and miles. Reconstructing a full year from memory is weak evidence.
Forgetting post office and supply runs. Trips to drop packages, buy boxes, or pick up packing material are business miles. Active sellers doing this 3-4 times per week can add 500-1,000+ miles annually, worth $350-$700 in deductions at current rates.
Switching methods mid-year. You must choose standard mileage or actual expenses at the start of the tax year for each vehicle. Once you use actual expenses, you cannot switch back to standard mileage on that vehicle in a future year.
Entering one-way miles instead of round-trip. A 10-mile drive to a thrift store is a 20-mile business trip. Enter the full round-trip distance for each outing.
Practical Examples
2 thrift runs/week x 12 miles x 48 weeks = 1,152 business miles
Deduction at the 2026 Jul-Dec rate of $0.76/mile = $876
Tax savings (22% bracket + SE): approximately $319 - covers a year of packing supplies and listing fees.
4 sourcing trips x 18 miles x 50 weeks = 3,600 business miles
Deduction at the 2026 Jul-Dec rate of $0.76/mile = $2,736
Tax savings (22% bracket + SE): approximately $997 - nearly $1,000 that stays in your pocket instead of going to taxes.
6 runs/week x 22 miles x 50 weeks = 6,600 business miles
Deduction at the 2026 Jul-Dec rate of $0.76/mile = $5,016
Tax savings (24% bracket + SE): approximately $1,818 - more than many resellers spend on inventory in a full month.
Tips for Resellers
Start a mileage app or spreadsheet on day one. Mileage apps can auto-log trips, while a spreadsheet works if you update it consistently and keep the required trip details.
Log the business purpose, not just the destination. "Sourcing inventory for eBay resale" or "Post office - drop packages" satisfy the IRS requirement. Generic entries like "business trip" or "work" are not sufficient and may be disallowed on audit.
Track every qualifying trip type. Sourcing outings get the headlines, but storage unit visits, supply pickups, meet-up sales, and post office runs all qualify. Sellers who track every trip vs. sourcing-only often find 20-35% more deductible miles.
Record odometer readings at year-start and year-end. The IRS may ask for total annual vehicle mileage to verify your business-use percentage. Log your odometer on January 1st and December 31st - a 30-second habit that protects your deduction.
FAQ: Reseller Mileage Deductions
Do I need receipts for mileage?
Not gas or repair receipts when you use the standard mileage rate, because the rate already accounts for fuel, maintenance, and depreciation. You do need a mileage log with the date, destination, business purpose, and miles for each trip. A digital mileage report or a manual log works when it has those details and is kept consistently.
Can I deduct miles from home to thrift stores?
Maybe. Only when the trip is a documented business-purpose drive and not a nondeductible commute. Home-office and regular-work-location facts matter: if your home is your qualifying business base, trips from there to sourcing, shipping, storage, or buyer and seller locations may be deductible. If the drive is a commute, a personal errand, or a mixed trip without allocation, do not count the personal portion.
What is the IRS mileage rate for 2025 and 2026?
The 2025 business rate is $0.70 per mile. For 2026, the IRS lists $0.725 per mile from Jan. 1 to Jun. 30 and $0.76 per mile from Jul. 1 to Dec. 31. Use the period that matches when the miles were driven. The standard rate covers fuel, depreciation, insurance, and maintenance as one amount, so you cannot also claim those same vehicle costs separately under the standard-rate method.
Can I deduct mileage if I also have a W-2 job?
Yes. Your reselling business is reported on Schedule C, separately from your W-2 job, and having a regular employer does not disqualify your self-employed reselling from mileage deductions. Your commute to the W-2 job is not deductible, but business miles for your reselling are tracked and deducted on Schedule C.
Is standard mileage better than actual expenses for resellers?
Standard mileage needs far less record-keeping. Actual expenses can come out ahead for higher-cost vehicles with high business use, so compare both with your own numbers. For a car you own, the standard rate has to be chosen in the first year the car is used for business: if you start with actual expenses, you cannot switch that car to standard mileage later.
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