What Are the IRS Mileage Requirements?

The Internal Revenue Service (IRS) provides a standard mileage rate as a simplified method for taxpayers to deduct the costs of operating a vehicle for business, charitable, and medical or moving purposes. This optional rate is an alternative to tracking all actual car expenses, such as gasoline, oil, and repairs. Using the standard mileage rate allows taxpayers to apply a cents-per-mile figure to their qualifying travel, streamlining the process of claiming a vehicle-related tax deduction.

Qualifying Business Travel

The primary distinction for deductible travel lies between business-related travel and personal commuting. Driving from your home to your main or permanent place of work is considered a non-deductible personal commute, regardless of the distance. This daily travel is viewed as a personal expense, and those miles cannot be claimed.

Deductible business mileage involves travel from your primary workplace to a secondary location. This includes driving to meet a client at their office, visiting a temporary work site, or traveling between different offices of the same business. If you work from a home office that qualifies as your principal place of business, travel from your home to another business location, such as a client meeting or to pick up supplies, is deductible. Running business-specific errands, like trips to the bank for a business deposit or to a store for office supplies, also qualifies.

The purpose of each trip determines its deductibility. For example, if you drive from your office to a supplier to pick up materials and then directly to a job site to deliver them, the entire trip is considered business travel. This helps distinguish these journeys from personal errands or the daily commute.

Required Documentation and Recordkeeping

To substantiate a mileage deduction, the IRS requires taxpayers to maintain thorough and timely records, known as a contemporaneous mileage log. This means records are created at or near the time of the travel. This log serves as the primary evidence for your claim and must contain specific details for each trip. For every qualifying drive, you must document the date, the total miles driven, the destination, and the specific business purpose.

A complete log must also include the vehicle’s total mileage for the year. This is accomplished by recording the starting odometer reading at the beginning of the year and the ending odometer reading on the last day of the year. The difference between these two numbers establishes the total miles the vehicle was driven, which is used to calculate the percentage of business use.

While the standard mileage rate simplifies recordkeeping, taxpayers can maintain these records manually in a physical logbook or use a digital application. Many apps use GPS to automate the process of recording trip details. Retaining receipts for fuel or maintenance can also serve as secondary evidence that the vehicle was in service during the period claimed.

The responsibility falls on the taxpayer to produce accurate and complete records if requested by the IRS during an audit. Without a detailed and consistent log, a mileage deduction may be disallowed. The records should be kept for at least three years from the date the tax return was filed.

Calculating the Deduction

The IRS sets standard mileage rates annually, which vary depending on the purpose of the travel. For 2025, the rate for business use is 70 cents per mile. The rate for medical or moving purposes for qualified active-duty members of the Armed Forces is 21 cents per mile, and the rate for miles driven in service of charitable organizations is 14 cents per mile.

To determine your total deduction, you multiply the total business miles recorded in your log by the applicable standard mileage rate. For instance, if your log shows 10,000 miles of qualifying business travel during the year, your deduction would be $7,000 (10,000 miles × $0.70). This calculation provides a single deduction amount that covers the various costs of operating your vehicle.

The standard mileage rate is comprehensive, accounting for expenses like fuel, oil, insurance, maintenance, and depreciation. Because these costs are factored into the rate, you cannot deduct them separately if you choose this method. However, certain vehicle-related expenses are not included in the standard rate and can be deducted in addition to your mileage claim. These include parking fees and tolls incurred during business travel, as well as any state and local personal property taxes paid on the vehicle.

Claiming the Deduction on Your Tax Return

For self-employed individuals, freelancers, and independent contractors, business mileage is a deductible expense that reduces their business’s taxable profit. This deduction is reported on Schedule C (Form 1040), Profit or Loss from Business. The total calculated mileage deduction is entered as a car and truck expense, lowering the net income subject to self-employment and income taxes.

The rules are different for most W-2 employees. The Tax Cuts and Jobs Act of 2017 (TCJA) suspended the deduction for unreimbursed employee business expenses for tax years 2018 through 2025. This means most employees who use their personal vehicle for work and are not reimbursed by their employer cannot claim a deduction for those miles on their federal tax return.

There are a few specific exceptions to this suspension. Certain taxpayers can still claim unreimbursed employee travel expenses as an adjustment to income. These groups include Armed Forces reservists, fee-basis state or local government officials, and qualified performing artists. The deduction is claimed on Form 2106, Employee Business Expenses, and then reported on Schedule 1 (Form 1040).