The IRS sets mileage rates once or twice a year, and they change based on fuel costs

The standard mileage rate is the amount the IRS allows you to deduct per mile when you drive for business, medical, or charitable purposes. For 2024, the rates are 67 cents per mile for business driving, 21 cents per mile for medical or moving expenses, and 14 cents per mile for charitable work. For 2025, the business rate is 70 cents per mile, medical and moving is 21 cents, and charitable remains 14 cents.

These rates change throughout the year when fuel prices shift significantly. The IRS announced the 2025 rates in December 2024, and they may adjust again mid-year if conditions warrant it. You use whichever rate was in effect during the month you drove, not the rate that applies when you file your return.

The mileage rate is an alternative to tracking actual expenses like gas, oil, repairs, and depreciation. Most people find it simpler because you only need to record the miles driven and the business purpose — you do not have to save receipts for every fill-up or maintenance bill.

Key Takeaways

  • The 2024 business mileage rate is 67 cents per mile; for 2025 it is 70 cents per mile.
  • Medical and moving expenses are 21 cents per mile in both 2024 and 2025; charitable driving is 14 cents per mile both years.
  • You must use the rate that was in effect during the month you drove, which means keeping a record of when you drove for each purpose.
  • The IRS publishes new rates on its website and may adjust them mid-year if fuel costs change significantly.

How the IRS calculates and announces mileage rates

The IRS bases mileage rates on the average cost of fuel, maintenance, insurance, and depreciation for a typical vehicle. When gas prices rise or fall sharply, the agency recalculates and publishes new rates. The business rate tends to move more than the medical or charitable rates because it accounts for more wear and tear.

The IRS announces rates through a notice posted on its website, usually in late November or December for the following year. If rates change mid-year, the agency publishes a separate notice with an effective date. You can find current and historical rates on the IRS.gov website under "Mileage Rates" or in the relevant tax year's instructions for Form 1040 Schedule C (if you are self-employed) or Schedule A (if you are itemizing deductions).

When you can use the standard mileage rate versus actual expenses

You have a choice: deduct the standard mileage rate, or track and deduct your actual vehicle expenses. You cannot do both for the same vehicle in the same year. The standard rate works best if your actual expenses per mile are lower than the IRS rate, or if you straightforward prefer not to keep detailed receipts.

If you choose actual expenses, you must track gas, oil, tires, repairs, insurance, registration, depreciation, and lease payments. You also need to calculate what percentage of your total driving was for business, medical, or charitable purposes — personal driving does not count. For most people, the standard mileage rate is easier and often yields a similar or better deduction.

One important rule: if you use the standard mileage rate in your first year of business use for a vehicle, you can switch to actual expenses later. But if you use actual expenses first, you must continue with actual expenses for the rest of that vehicle's life, even if the standard rate becomes more favorable.

How to document mileage for tax purposes

The IRS requires you to keep a contemporaneous record of your mileage — meaning you should record it at or near the time you drive, not months later from memory. You do not need a fancy app or form; a straightforward log with the date, starting odometer reading, ending reading, miles driven, destination, and business purpose is sufficient. Many people use a small notebook in their car or a spreadsheet.

If you use a mileage-tracking app, make sure it records the date and purpose of each trip. The IRS is skeptical of reconstructed logs created after the fact, so contemporaneous records carry more weight if you are audited. You should also keep your odometer readings from the start and end of the tax year to show your total miles driven.

Business versus medical versus charitable mileage

Business mileage includes driving to meet clients, attend conferences, make sales calls, or travel between job sites. It does not include commuting from home to your regular workplace. If you are self-employed, business mileage goes on Schedule C; if you are an employee, you cannot deduct it at all under current law (this changed in 2018).

Medical mileage covers driving to doctor appointments, hospitals, therapy, or to pick up prescriptions — for yourself or a dependent. You deduct it on Schedule A if you itemize deductions, and only the amount above 7.5 percent of your adjusted gross income counts. Moving mileage applies only to a move related to a new job and is deducted on Form 3903; this category is rare and has strict rules.

Charitable mileage is driving for a may have access to charitable organization — volunteering at a food bank, transporting donations, or attending a board meeting. You deduct it on Schedule A. The rate is lower than business or medical because the IRS assumes less wear and tear on volunteer driving.

What happens if you mix personal and business driving

If you use the same vehicle for both personal and business driving, you can only deduct the business portion. For example, if you drive 20,000 miles in a year and 8,000 are for business, you deduct 8,000 miles at the business rate. You must track which miles are which — the IRS will not accept a rough estimate.

This is where many people make mistakes. Commuting to a regular job does not count as business driving, even if you stop at a client site on the way. Driving from home to a client and then to another client does count. If you are unsure whether a trip qualifies, the general rule is: does the trip serve a business purpose, or is it primarily personal with a business errand attached?

Where to find the official IRS mileage rates

The IRS publishes mileage rates on IRS.gov under the "Mileage Rates" section. You can also find them in the instructions for Form 1040, Schedule C (for self-employed income), Schedule A (for itemized deductions), and Form 3903 (for moving expenses). The rates are also listed in IRS Notice 2024-80 (for 2025 rates) and similar notices for prior years.

If you use tax software, it usually fills in the current rates automatically. However, you should verify the rates match the months you drove, especially if you drove in multiple calendar years or if rates changed mid-year. The IRS website also maintains a historical table of rates going back several years, which is useful if you are amending a prior return.

Frequently Asked Questions

Can I deduct mileage if I work from home?

No, driving from your home office to a client site counts as commuting, which is not deductible. However, if you have a regular workplace elsewhere and drive from home to that workplace, you can deduct mileage only if you stop at a business location that is not your regular workplace. The rules are strict: the IRS does not allow a home office to become your principal place of business for mileage purposes just because you work there some days.

What if the IRS rate changes mid-year?

You use the rate that was in effect during the month you drove. If the rate changed on July 1, miles driven in June use the old rate and miles driven in July use the new rate. This means you need to track not just total miles, but which months you drove them. Most people organize their mileage log by month to make this easier.

Do I need receipts if I use the standard mileage rate?

No, you do not need gas receipts or repair bills. You only need a record of the miles driven, the dates, and the business purpose. However, you should keep your odometer readings and any documents that support your mileage log, such as appointment confirmations or client meeting notes that corroborate your trips.

Can I use the standard mileage rate for a vehicle I lease?

Yes, you can use the standard mileage rate for a leased vehicle. You cannot deduct lease payments separately if you use the standard rate — the rate is meant to cover all costs, including depreciation (or in this case, the lease payment itself). If you choose actual expenses instead, you can deduct the lease payment plus gas, insurance, and repairs.

What if I drove more miles than I can document?

The IRS will only allow you to deduct the miles you can support with a contemporaneous record. If you cannot document your mileage, you cannot claim the deduction. This is why keeping a mileage log throughout the year is important — reconstructing it from memory or estimates after the fact is unlikely to hold up in an audit.