What Is the IRS Standard Mileage Rate?

The Internal Revenue Service (IRS) offers a simplified method, the standard mileage rate, for taxpayers to deduct vehicle costs for business, medical, moving, or charitable purposes. This rate provides a set per-mile deduction, streamlining tax preparation by offering an alternative to tracking every expense.

What the Standard Mileage Rate Is

The IRS standard mileage rate is an optional method allowing taxpayers to deduct vehicle operating costs. This rate is updated annually to reflect expenses like fuel, maintenance, and depreciation. Using this rate avoids detailed record-keeping of actual expenses.

For the 2025 tax year (filed in 2026), the business rate is 70 cents per mile. Medical and moving purposes are 21 cents per mile, and charitable mileage is 14 cents per mile. These rates apply to all vehicle types, including electric, hybrid-electric, gasoline, and diesel-powered vehicles.

Who Can Use the Standard Mileage Rate

The standard mileage rate is primarily for self-employed individuals and small business owners who report business mileage on Schedule C (Form 1040). Employees cannot deduct unreimbursed business expenses for tax years 2018-2025. However, employers can use the rate to reimburse employees, and these reimbursements are not taxable if paid at or below the IRS rate.

To qualify, a taxpayer must own or lease the vehicle. Limitations include not using the method for five or more vehicles simultaneously. If actual expenses were claimed for an owned vehicle in its first business year, switching to the standard rate in subsequent years is not allowed. For leased vehicles, the standard rate must be used for the entire lease period if chosen.

Qualifying travel includes:
Business trips (e.g., client meetings, work errands)
Medical travel (e.g., doctors, hospitals)
Moving mileage (restricted to qualified active-duty military members moving due to orders)
Charitable travel for qualified organizations

Commuting between home and work is personal travel and does not qualify.

Essential Record Keeping for Mileage

Accurate record-keeping is fundamental for any mileage deduction. The IRS requires “comprehensive and contemporaneous records” for all vehicle use, meaning information must be recorded at or near the time of the trip.

For each trip, document the date, destination, purpose, and total miles driven. Recording starting and ending odometer readings can help verify total annual mileage and support the deduction during an audit.

Mileage tracking methods include paper logbooks, mobile applications, or vehicle tracking devices. Records must be reliable and accessible for review, and should be kept for at least three years from the tax return’s filing date.

Calculating and Claiming Your Mileage Deduction

To calculate the deduction, multiply total qualified miles by the applicable IRS standard mileage rate. For example, 15,000 business miles in 2025 at 70 cents per mile yields a $10,500 deduction. Parking fees and tolls for qualified trips can be added to this amount.

Self-employed individuals claim this deduction on Schedule C (Form 1040). Medical and charitable mileage, which requires itemizing deductions, are reported on Schedule A (Form 1040).

While the standard mileage rate simplifies the process, taxpayers can also use the actual expense method. This involves tracking and deducting actual costs like gas, oil, repairs, insurance, and depreciation. Taxpayers should calculate both methods to determine which yields a larger deduction.