A business car depreciation calculator helps you figure out how much of your vehicle’s cost you can deduct each year for tax purposes. This guide explains how depreciation works for business vehicles, what factors the IRS considers, and how you can maximize your tax savings. We’ll look at different methods, important limits, and show you how to use a calculator effectively. Business Car Depreciation Calculator (2026) Estimate your first-year federal deduction for a vehicle you purchased and made available for business use in 2026. A car previously used only for

The IRS has announced a rare mid-year increase to the standard mileage rates for 2026. Beginning July 1, 2026, the business standard mileage rate increases from 72.5 cents to 76 cents per mile. The rates for eligible medical and moving travel also increase, while the charitable mileage rate remains unchanged. The IRS says the adjustment reflects recent increases in fuel prices. Because the change took effect halfway through the year, taxpayers and businesses will need to use two different mileage rates when calculating eligible 2026 travel. Table of Contents Updated