Can I Claim a Commuting Tax Deduction?

The Internal Revenue Service (IRS) defines commuting as the travel between your home and your main or regular place of work. These costs are generally considered personal expenses, not business expenses, and therefore cannot be deducted on your tax return. This rule applies regardless of the distance you travel for your daily commute. Even if you perform work-related tasks during your trip, the fundamental nature of the travel remains personal, as the IRS views the decision of where to live as a personal choice.

The General Non-Deductibility of Commuting

The reasoning behind the non-deductibility of commuting costs is that these are expenses incurred to get you to the starting point of your workday. The IRS places these costs in the same category as other personal living expenses, like housing or meals. A key concept is the “tax home,” which for tax purposes, is the entire city or general area where your main place of business is located, regardless of where you choose to live. Any travel within this metropolitan area to get to that primary work location is considered a personal commute and not a deductible business expense.

Exceptions That Allow for a Deduction

Traveling to a Temporary Work Location

An exception to the commuting rule involves travel to a temporary work location. The IRS defines a work assignment as “temporary” if it is realistically expected to last for one year or less, and it does in fact last for that duration. If you travel from your home to a temporary work location outside of your tax home’s metropolitan area, you can deduct the transportation expenses. You may also be able to claim a deduction for travel to a temporary work location within your metropolitan area if you have a regular place of business elsewhere or a qualifying home office. For example, if you have a main office but are assigned to a different project site for a few months, the daily travel from your home to that temporary site is deductible.

Traveling Between Workplaces

The cost of transportation between two different work locations within the same day is deductible. This applies if you work at two different jobs. For instance, if you leave your primary job and drive directly to a second, part-time job, the mileage between the two workplaces can be deducted. This rule is also applicable to self-employed individuals who travel between various client locations, but the initial trip from home to the first work location and the final trip back home are still considered non-deductible commuting.

Travel from a Qualifying Home Office

If your home serves as your principal place of business, it is treated as a work location. To qualify, a home office must be used exclusively and regularly for your trade or business. When these conditions are met, you can deduct the cost of travel from your home office to another work location for that same business. For example, a self-employed consultant whose home office is their principal place of business can deduct the round-trip transportation expenses for a meeting at a client’s office. Travel to pick up supplies from the qualifying home office is also deductible.

Calculating Deductible Transportation Expenses

Standard Mileage Rate

The most common method for calculating vehicle expenses is the standard mileage rate. The IRS sets a specific rate per mile for business travel each year, and for 2025, the rate is 70 cents per mile. This rate is intended to cover the variable costs of operating a car, such as gasoline and oil, as well as fixed costs like insurance and depreciation. To use this method, you must track the miles driven for deductible business purposes. Parking fees and tolls incurred during business travel are not included in the standard rate and can be deducted separately.

Actual Expense Method

As an alternative, you can use the actual expense method. This involves tracking all the actual costs of operating your vehicle for the year, which can include gasoline, oil changes, tires, repairs, insurance, registration fees, and depreciation. You must calculate the percentage of your vehicle’s use that was for business purposes. To determine the deductible amount, you add up all your vehicle-related expenses and multiply the total by your business-use percentage. This method requires more detailed recordkeeping but can result in a larger deduction for those with high vehicle expenses.

Recordkeeping Requirements

The IRS requires detailed and contemporaneous records to support any deduction for transportation expenses. For either method, you must maintain a reliable mileage log. This log should document the date of each trip, your destination, the business purpose, and the total miles driven. If you use the actual expense method, you must also keep all receipts for vehicle-related purchases, such as fuel or repairs. Without proper documentation, the IRS can disallow your deduction in the event of an audit.

Claiming the Deduction on Your Tax Return

For Self-Employed Individuals

Self-employed individuals, such as independent contractors, claim deductible transportation expenses on Schedule C (Form 1040), Profit or Loss from Business. The form has a specific section for “Car and Truck Expenses” where you report the total amount of your deductible travel. This deduction reduces your business’s net profit, which in turn lowers your overall income tax liability as well as your self-employment taxes. It is important to complete Part IV of Schedule C, which asks for information about your vehicle and mileage.

For Employees

For most W-2 employees, the ability to deduct unreimbursed business expenses has been suspended by the Tax Cuts and Jobs Act of 2017 for tax years 2018 through 2025. This means that regular employees who incur transportation costs for business purposes generally cannot claim a deduction for them on their federal tax returns. There are a few specific categories of employees who are exempt from this suspension, including Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials. Eligible employees in these groups can still deduct their transportation costs using Form 2106, Employee Business Expenses.