The IRS sets a standard mileage rate each year for business, medical, and charitable driving

The IRS standard mileage rate is the amount per mile the government allows you to deduct or be reimbursed for when you drive for business, medical, or charitable purposes. The IRS publishes a new rate each year, usually in December for the following year. For 2024, the rates are 67 cents per business mile, 21 cents per medical or moving mile, and 14 cents per charitable mile. For 2025, the rates are 70 cents per business mile, 21 cents per medical or moving mile, and 14 cents per charitable mile.

You do not have to use the standard rate. You can instead deduct your actual expenses — gas, oil, repairs, insurance, depreciation — but only if you keep detailed records of every expense. Most people find the standard rate simpler because you only need to track miles driven and the dates.

The rate changes because fuel prices and vehicle operating costs shift. The IRS does not announce rates in advance; they appear on the IRS website and in a news release when they are set.

Key Takeaways

  • The 2025 standard mileage rate for business driving is 70 cents per mile; medical and moving is 21 cents; charitable is 14 cents.
  • You can use the standard rate or track actual expenses, but you must choose one method and stick with it for the tax year.
  • To claim mileage, you need a record showing the date, destination, business purpose, and total miles driven for each trip.
  • If your employer reimburses you at or below the standard rate, that reimbursement is not taxable income to you.
  • The rate applies whether you own the vehicle outright or lease it; you cannot use the standard rate if you use the vehicle for personal use and business use in the same year unless you meet specific conditions.

How the standard mileage rate works on your tax return

If you are self-employed or a business owner, you deduct mileage on Schedule C (Profit or Loss from Business). Multiply your total business miles by the 2025 rate of 70 cents. That number goes on the vehicle expenses line. You do not itemize each trip; you report the total miles and the total deduction.

If you are an employee and your employer does not reimburse you, you cannot deduct mileage on your personal return. Employee business expenses are no longer deductible under current tax law, even if you paid them out of pocket.

If your employer reimburses you, the reimbursement is not taxable to you as long as it does not exceed the standard rate and you provide your employer with a record of the miles and business purpose. If your employer pays you more than the standard rate, the excess is taxable income and should appear on your W-2.

What counts as business, medical, and charitable mileage

Business mileage includes driving to client meetings, job sites, conferences, or other work-related destinations. It does not include commuting from home to your regular workplace. If you work from home and drive to a client's office, that is business mileage. If you work in an office and drive home, that is commuting and does not count.

Medical mileage is driving to doctor appointments, hospitals, therapy, dental visits, or other medical treatment for yourself or a dependent. You can also deduct mileage for moving to a new home if the move is related to a new job (the job must be at least 50 miles farther from your old home than your old job was).

Charitable mileage is driving on behalf of a may have access to charity — volunteering at a food bank, driving for a nonprofit, attending a charity board meeting. You cannot deduct mileage for driving to a charity event where you are a donor or attendee, only where you are performing services.

Keeping records that the IRS will accept

The IRS requires contemporaneous records. That means you must write down the information while the trip is happening or very soon after, not months later from memory. A straightforward log works: date, starting location, ending location, business purpose, and miles driven. You can use a notebook, a spreadsheet, or a mileage tracking app.

You do not need to submit the log with your tax return, but you must have it available if the IRS asks. The IRS is more likely to question mileage deductions if the amount seems high relative to your income or if you claim a large number of miles with vague purposes like "business travel."

If you use an app like MileIQ, Stride Health, or Everlance, keep a backup copy of your records. Apps can shut down or lose data. A screenshot or export of your mileage log is safer than relying on the app alone to prove what you drove.

Choosing between standard rate and actual expenses

You can use the standard rate or actual expenses, but you must choose one method for each vehicle and stick with it for the entire tax year. You cannot use the standard rate for January through June and switch to actual expenses for July through December.

The standard rate is usually simpler and faster. You multiply miles by the rate and you are done. Actual expenses require you to save receipts for gas, insurance, maintenance, repairs, registration, and depreciation, then calculate what percentage of those expenses were for business use. If you drive the same vehicle for both personal and business use, you have to split the expenses proportionally.

Actual expenses can be better if you have a newer vehicle with high insurance and maintenance costs, or if you drive very few business miles. Standard rate is usually better if you drive many business miles or own an older, cheaper vehicle.

Special rules for vehicles you lease or finance

You can use the standard mileage rate whether you own your vehicle outright, finance it, or lease it. The rate covers depreciation, so you do not calculate that separately. If you lease a vehicle, you can deduct the mileage at the standard rate; you cannot deduct lease payments separately.

If you use the standard rate in the first year you own or lease a vehicle, you can continue using it in future years. If you use actual expenses in the first year, you must continue using actual expenses for that vehicle in all future years. This rule prevents people from switching methods to get the best deduction each year.

What happens if your employer reimburses you

If your employer pays you a mileage reimbursement, that payment is not taxable income as long as it does not exceed the standard rate and you account for it properly. "Account for it properly" means you give your employer a record showing the date, destination, business purpose, and miles for each trip, or a summary total if your employer allows it.

If your employer reimburses you at 70 cents per mile or less for 2025 business driving, you report nothing on your tax return. The reimbursement is not income, and you do not deduct mileage. If your employer reimburses you at more than 70 cents per mile, the excess is taxable wages and will appear on your W-2 in box 1.

Some employers use a flat mileage allowance instead of reimbursing actual miles. If your employer gives you $500 per month for mileage without tracking actual miles, that is taxable income to you. You cannot deduct mileage on top of it.

Frequently Asked Questions

Can I deduct mileage if I work from home?

Yes, if you drive from home to a client meeting or job site, that is business mileage. Commuting from home to a regular workplace does not count. If you have a home office and drive to meet a client, the mileage counts as business use.

What if I use my car for both personal and business driving?

You deduct only the business miles, not the personal miles. Keep a log that separates the two. If you drive 15,000 miles total in a year and 6,000 are business miles, you deduct 6,000 miles at the standard rate. The personal miles do not count.

Do I need to report mileage on my tax return?

If you are self-employed, you report the total deduction on Schedule C. If you are an employee, you do not report it unless your employer reimbursed you at more than the standard rate. You keep the mileage log for your records in case the IRS asks.

Can I use the standard rate if I use the vehicle for personal use too?

Yes, as long as you track and deduct only the business miles. You cannot use the standard rate if you used actual expenses in the first year you owned or leased the vehicle; after that, you are locked into actual expenses for that vehicle.

What if the IRS audits my mileage deduction?

Produce your mileage log showing dates, destinations, purposes, and miles. If you cannot produce a contemporaneous log, the IRS may disallow the deduction. A detailed log is your best defense. Vague entries like "business travel" without a destination are harder to defend than specific entries like "client meeting at 123 Main Street, 14 miles."