What Is the Official DOT Mileage Rate for Truckers?

The commercial trucking industry requires precise tracking of mileage for operational and compliance purposes. For many owner-operators and fleet managers, understanding the different mileage rates and their applications is a frequent inquiry. This guide clarifies the distinct contexts in which mileage tracking and valuation are important for commercial drivers.

Distinguishing Federal Mileage Rates

A common point of confusion is the belief that the U.S. Department of Transportation (DOT) sets an official mileage reimbursement rate. The DOT does not establish such a rate; the figure most people seek is the standard mileage rate from the Internal Revenue Service (IRS). This is a tax-related figure, not a required payment between a carrier and a driver.

For the 2025 tax year, the IRS set the standard mileage rate for business use at 70 cents per mile. This optional rate allows taxpayers to calculate the deductible costs of operating a vehicle for business purposes in lieu of tracking actual expenses like fuel and repairs. Owner-operators can use this rate to simplify record-keeping for their vehicle-related tax deductions.

To use the standard mileage rate, a taxpayer must choose it in the first year the vehicle is used for business. In later years, they can choose between the standard rate or the actual expense method. For leased vehicles, if the standard rate is chosen, it must be used for the entire lease period. This IRS rate applies to cars, vans, pickups, and panel trucks.

DOT Mileage Reporting Requirements

The DOT mandates the tracking and reporting of mileage for regulatory compliance, not for reimbursement. The two primary areas for this reporting are the International Fuel Tax Agreement (IFTA) and Hours of Service (HOS) logs.

IFTA is an agreement among U.S. states and Canadian provinces that simplifies reporting of fuel use taxes for interstate carriers. Carriers must get an IFTA license and decals for their qualified motor vehicles. They are required to track all miles driven and fuel purchased in each jurisdiction. This data is compiled into a quarterly fuel tax report to reconcile taxes based on where miles were driven, not where fuel was purchased.

Mileage is also a required data point for HOS logs, which enforce safety regulations on driving time. With the mandate of Electronic Logging Devices (ELDs), mileage is automatically recorded. This data helps verify a driver’s record of duty status by ensuring driving time and distance align. The ELD provides a more accurate and tamper-resistant record than traditional paper logs by capturing vehicle motion, miles driven, and engine hours.

Calculating Your Cost Per Mile

Understanding your business’s actual cost per mile (CPM) is important for profitability. This calculation allows an owner-operator or fleet manager to know the precise cost of running their truck for every mile it travels. This figure is the foundation for setting competitive and profitable freight rates. Calculating your CPM involves totaling all business-related expenses over a specific period and dividing by the total miles driven in that same timeframe.

The first step is to categorize all expenses into two groups: fixed costs and variable costs. Fixed costs are expenses that do not change regardless of how many miles are driven, such as monthly truck payments, insurance premiums, permit fees, and loan interest.

Variable costs, on the other hand, fluctuate directly with the number of miles driven. This category includes expenses like fuel, tires, routine maintenance, oil changes, and repairs. Accurately tracking these expenses requires diligent record-keeping of all receipts and invoices related to the truck’s operation.

Once you have totaled your fixed and variable costs for a set period, such as a month or a quarter, you add them together to get your total operating cost. You then divide this total cost by the total number of miles driven during that same period. The resulting number is your cost per mile, a metric for assessing the financial performance of your trucking operation.