Can W-2 employees use this?

Generally no — TCJA suspended unreimbursed employee mileage deduction through 2025. Self-employed yes.

Which method is more common?

Standard rate, for simplicity. Actual wins for new/luxury vehicles with high depreciation.

Do I need to attach logs?

Not on initial filing, but IRS can request in audit. Keep for 7 years.

Does it work for multiple vehicles?

Use one sheet per vehicle and sum at year-end. Mixing vehicles invalidates the calculation.

Sole proprietor only?

Sole prop, single-member LLC (Schedule C), partnerships, and self-employed contractors. Not W-2 employees.

Reports · CSV

Annual mileage deduction worksheet

CSV that auto-computes your annual mileage tax deduction — standard rate vs. actual expense, side by side.

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At year-end, accountants and self-employed taxpayers face a choice: deduct via standard mileage rate (rate × business miles) or via actual expense (business-use % × total expenses)? This worksheet computes both side by side and flags the higher deduction. It works for sole proprietors (Schedule C), Form T2125 filers, and any business owner using a personal vehicle. Source data comes from the daily log (miles) and vehicle log (expenses) — this sheet only consolidates.

When to use this template

Use at fiscal year-end (typically Jan-Apr). Before that, keep the daily log and vehicle log updated. This sheet does not replace the logs — it consolidates what you recorded during the year and computes the final deduction. Ideally, run both methods early and pick the higher at year-end.

How to use in 5 steps

1. Import monthly data — For each month, copy business miles and total expenses from your logs.
2. Confirm the standard rate — Rate changes yearly. For 2025: $0.70/mi (US), CAD $0.70 (CA), £0.45 (UK), AUD $0.85 (AU).
3. Compute business-use % — business miles / total miles = %. E.g. 12,000 / 16,000 = 75%.
4. Compare totals — Standard total = business miles × rate. Actual total = total expense × business-use %. Use the higher.
5. Attach to filing — Print or export to PDF. Attach to your return along with the supporting logs.

Common pitfalls

Mixing tax years — Each sheet covers one tax year. January 2026 expense does not enter 2025 calculation.
Forgetting depreciation — In actual-expense, depreciation can be half the total. Do not forget.
Wrong % calculation — Business-use % is business miles / TOTAL miles (including personal), not / business miles.
Switching methods mid-year — Decide the method at year start and stay consistent. Switching invites audit. The IRS also restricts switching from actual to standard later.

Frequently asked questions

Can W-2 employees use this?: Generally no — TCJA suspended unreimbursed employee mileage deduction through 2025. Self-employed yes.
Which method is more common?: Standard rate, for simplicity. Actual wins for new/luxury vehicles with high depreciation.
Do I need to attach logs?: Not on initial filing, but IRS can request in audit. Keep for 7 years.
Does it work for multiple vehicles?: Use one sheet per vehicle and sum at year-end. Mixing vehicles invalidates the calculation.
Sole proprietor only?: Sole prop, single-member LLC (Schedule C), partnerships, and self-employed contractors. Not W-2 employees.

Before submitting, run the numbers through the online calculator — it applies current official rates and shows the math step by step, avoiding errors that cost refund money or trigger an audit.

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