Can You Deduct Miles Driven to Work?

It’s a common question: “Can I deduct the miles I drive to work?” Tax laws distinguish between personal commuting and deductible business-related travel. While the daily drive to a regular workplace is generally considered a personal expense, certain work-related driving can qualify for a tax deduction. Understanding these rules and maintaining proper records is essential for anyone looking to claim these expenses.

The Commuting Rule

The Internal Revenue Service (IRS) generally defines commuting as travel between an individual’s home and their main or regular place of work. These expenses are considered personal and are not tax-deductible. This is because such travel is a personal choice necessary for an individual to get to their employment, rather than an expense incurred for the direct conduct of business.

For example, whether you drive a few miles or a hundred miles from your home to your primary office, the cost of that trip is typically nondeductible. This applies even if you perform some work during your commute, such as making business calls. The IRS views these costs, including gas, public transportation fares, or vehicle wear and tear, as personal commuting expenses.

This rule holds true even if your work location varies daily, as long as it’s considered your regular place of work. Trips from home to your first work activity of the day and from your last work activity back home are categorized as commuting.

When Driving IS Deductible

While the daily commute is generally not deductible, specific scenarios allow for the deduction of work-related driving expenses. These exceptions apply to travel that occurs during the course of business, rather than travel to begin work. The IRS categorizes these as business travel, distinct from commuting.

Driving between multiple workplaces qualifies for a deduction. For instance, if you have two jobs and travel directly from one workplace to the other, that mileage is deductible. Similarly, travel from your main workplace to a temporary work location, and then back to your main workplace, is also considered deductible business mileage. A temporary work location is one where you expect to work for less than one year.

Travel from a qualified home office to another work location in the same business is deductible. However, your home office must meet specific IRS requirements to be considered a principal place of business. Trips to client meetings, business-related errands, or other appointments away from your regular office are deductible.

Self-employed individuals, including independent contractors, are generally eligible to deduct business mileage on their tax returns. However, most W-2 employees can no longer deduct unreimbursed business expenses, including mileage. Exceptions exist for certain categories of employees, such as armed forces reservists, qualified performing artists, and fee-basis government officials, who may still deduct these expenses.

Calculating Your Deduction

There are two primary methods for calculating your deductible work-related driving expenses: the standard mileage rate method and the actual expenses method. Each approach has distinct rules and implications for record-keeping.

The standard mileage rate is often the simpler method. The IRS sets this rate annually, and it covers all costs of owning and operating a vehicle, including gas, oil, maintenance, and depreciation. For 2024, the business standard mileage rate was 67 cents per mile, increasing to 70 cents per mile for 2025. When using this method, you can also deduct business-related parking fees and tolls separately.

You can use the actual expenses method. This approach allows you to deduct the actual costs incurred for the business use of your vehicle. Deductible expenses include gas, oil, repairs, tires, insurance, registration fees, licenses, lease payments, and depreciation. This method requires more detailed record-keeping, as you must track all vehicle-related expenses and calculate the percentage of your vehicle’s use for business purposes.

Choosing between the two methods often depends on your specific situation. If your actual car expenses are higher than what the standard mileage rate would provide, or if you have a more expensive vehicle, the actual expense method might result in a larger deduction. However, the standard mileage rate is generally preferred for its simplicity and reduced record-keeping burden.

Keeping Proper Records

Maintaining accurate and comprehensive records is important for substantiating any mileage deduction claimed on your tax return. The IRS requires detailed documentation to prove the business necessity and accuracy of your claimed expenses. Without proper records, your deduction may be disallowed in the event of an audit.

For each business trip, you should record specific information:
The date of the trip
The starting location and destination
The total mileage driven
The clear business purpose of the travel

Various methods can be used to track this information, such as a traditional mileage logbook, digital spreadsheets, or smartphone applications. The key is to keep records contemporaneously, meaning at or near the time the travel occurs, to ensure accuracy. These records support your deduction claims.

Claiming the Deduction on Your Tax Return

The method for claiming your mileage deduction on your tax return depends on your employment status. Self-employed individuals, including sole proprietors and independent contractors, report their vehicle expenses as business deductions. These expenses are typically claimed on Schedule C (Form 1040), Profit or Loss From Business.

For self-employed individuals using the standard mileage rate, the total business miles are multiplied by the applicable rate, and this amount, along with any business-related tolls and parking fees, is entered on Schedule C. If using the actual expenses method, various vehicle costs such as gas, insurance, and repairs are listed, with depreciation often reported separately.

For the limited categories of employees still eligible to deduct unreimbursed business expenses, such as armed forces reservists, qualified performing artists, and fee-basis government officials, these deductions are reported on Form 2106, Employee Business Expenses. The total deductible amount from Form 2106 is then typically carried over to Schedule 1 (Form 1040), Additional Income and Adjustments to Income, as an adjustment to income.