Claiming the mileage tax deduction: IRS mileage rates & business reimbursement rules

Using your vehicle extensively for work can lead to higher mileage and increased expenses. Fortunately, you can write off certain mileage. While not everyone qualifies, it’s worth taking the time to review the mileage deduction rules, as the deduction can help lower your taxable income.

Deductible mileage generally falls into three categories:

• Driving for business purposes,
• charitable or medical mileage, or
• mileage for relocation purposes of qualified active-duty members of the Armed Forces.

There’s more to unpack with claiming mileage on your taxes, and we’re here to help you learn. Follow along as we cover who is eligible for a tax deduction for mileage, the federal mileage rate, how to claim mileage on taxes, and other mileage reimbursement details.

Taking the mileage tax deduction

Before diving into the mileage tax deduction, let’s take a quick but important step back to understand the tax landscape where vehicle use and deductions are concerned. Those who use their vehicle for business should know there are two methods of claiming the use of your vehicle: the standard mileage rate and the actual expense method.

• The standard mileage rate allows you to claim a fixed amount per mile driven. Using the standard mileage deduction method, you multiply the number of business miles driven by the standard mileage rate set by the IRS. The federal mileage rates are covered below. Review the information below about the implications of when you can elect this method.
• The actual expense method allows you to deduct the actual cost of operating your vehicle from your taxable income. Using the actual expense method, you add up your vehicle-related expenses, like gas, repairs, car insurance, and depreciation. Then, you multiply this total by the percentage of business use.

Choose the method that is most beneficial to you. Here are a few points to consider:

• Frequent business driving: Opting for the standard mileage deduction may be simpler to calculate if you keep good records.
• Significant vehicle costs: If your vehicle-related expenses are substantial, the actual expense method may give you a larger tax deduction.

Take note! Switching between methods has consequences. Choose your method of deducting mileage by the tax return due date (including extensions) in the year the car is placed in service and then stick with it. Switching methods in later years may come with restrictions like depreciation limits or may not be allowed. For example, if you use the actual expense method the first year the car is used for business, you must stick with that choice every year the car is used for your business.

Driving as an independent contractor? Check out our Guide to Gig Worker Taxes. to find out all the ways this may impact your taxes and how Block can help.

Who can take the IRS mileage reimbursement?

Not everyone is eligible for the mileage deduction. This tax write-off applies to:

• Self-employed or small business owners, including independent contractors, such as drivers for rideshare services
• Certain employees, like qualified performing artists, reservists in the armed forces, and fee-based government officials
• Individuals traveling for volunteer work or to medical appointments

IRS mileage deduction rules

Before the 2017 Tax Cuts and Jobs Act (TCJA), employees could claim a tax deduction for unreimbursed mileage and expenses. However, the TCJA suspended the deduction for employee business expenses, so most employees can no longer deduct mileage and other unreimbursed expenses on their taxes.

How much is employer mileage reimbursement?

Depending on a company’s travel and expense policies, employees may be eligible for employer-paid mileage reimbursement. This happens when an employee drives their own car for work (outside of their normal place of business) and submits their reimbursement information to their employer.

The employer usually requires you to submit:

• The trip’s purpose
• The starting and ending points
• Total miles driven

What is the mileage reimbursement rate for employees?

The mileage reimbursement rate is set by each employer. A company’s business mileage reimbursement rate doesn’t always mirror the IRS mileage rate, so rates vary by employer. Your employer will reimburse approved miles at the company’s predetermined rate per mile.

How much is mileage reimbursement? Federal mileage rate details

Each year, the IRS standard mileage rate changes due to inflationary costs. The most recent mileage rates are listed below.

IRS mileage rate 2024 

The IRS mileage rates (2024) for taxes filed in 2025 are:

• $0.67 per mile for business
• $0.14 per mile for charity
• $0.21per mile is the medical mileage deduction
• $0.21 for moving purposes for qualified active-duty members of the armed forces

IRS mileage rate 2025

The standard mileage rates for 2025 (taxes filed in 2026) are:

• $0.70 per mile for business
• $0.14 per mile for charity
• $0.21 cents per mile is the medical mileage deduction
• $0.21 cents per mile is the moving deduction for military or certain government employees

Applying the IRS mileage rate deduction to your taxes

The tax documents you use to deduct mileage expenses vary based on your situation:

• For self-employed individuals (business): Report mileage as part of car and truck expenses on Schedule C (1040), Section IV. In addition to listing miles driven during the tax year, the form will ask you to answer a few questions about the vehicle, including when it was placed into service for business use. Acceptable mileage write-offs include any business-related errand or trip, including driving to:
  • Meet clients or customers
  • Meet with a professional consultant, accountant, or professional service provider
  • A bank for a business-related transaction
  • A store for office supplies
• For charity mileage, use Schedule A (Form 1040) under the charitable deductions section. Provide the name of the charitable organization and a description of your volunteer work.
• For medical mileage, use Schedule A (Form 1040) under the medical section.
• For certain government employees or military: Armed Forces reservists, qualified performing artists, or fee-basis state or local government officials should use Form 2106 and Schedule 1 (Form 1040) to claim mileage on taxes.

Mileage tax deduction FAQs

Are there limitations to deducting mileage?

Yes, you can’t claim the IRS standard mileage rate option on your tax return if you:

• Used five or more cars at the same time (fleet operations)
• Claimed a depreciation deduction for the car using any method other than straight-line depreciation
• Claimed a Section 179 deduction for the vehicle
• Claimed the special depreciation allowance for the vehicle
• Claimed actual car expenses after 1997 for a leased vehicle
• Are a rural mail carrier who receives a qualified reimbursement

Do I need to keep records of my mileage?

Record-keeping is crucial for anyone claiming a mileage deduction. The IRS urges you to maintain “comprehensive and contemporaneous records” in case they are requested. Let’s breakdown that technical jargon:

• Comprehensive means they show the full trip details. This includes what the trip is for, who you were with, and why it pertains to your business.
• Contemporaneous means you should track business trip miles in real-time, rather than months or years later. You can use pen and paper, a digital mileage log, or even a smartphone app to help with mileage tracking.

Receipts for parking and toll fees are also important to retain, as these expenses may also be tax deductible.

Can I deduct mileage going to and from a workplace?

We often get asked, “Can I deduct mileage to and from work?” The answer is no. You can only count the trips after arriving at work or your first business destination.

For independent contractors, the trip from home to your main business location generally is not deductible. Trips driven for business purposes other than the main place of business, such as calling on clients or attending an industry event, are deductible. If you qualify to have a home office that is your main place of business then your first trip is deductible. Learn more about claiming the home office deduction.

For rideshare drivers, the drive from home to pick up the first passenger and the drive home after dropping off the last passenger isn’t deductible. Only trips driven between the first business stop and subsequent stops can be deducted as a mileage expense on your taxes.

Should I use the standard mileage rate or claim actual expenses?

To determine if you would benefit most from the standard mileage deduction or actual vehicle expenses, review your specific circumstances. Consider how much you’ll drive, your vehicle’s value, and if you can be consistent about tracking mileage and expenses.

Still unsure which mileage method to use? Speak with an H&R Block tax professional to help determine which deduction method will work best for you.

My employer reimburses mileage, however it’s a lower per-mile rate than the IRS standard mileage rate. Can I claim the difference?

You can’t claim a deduction unless you are an Armed Force reservist, a qualified performing artist, fee basis- state or local government official, or an employee with impairment-related work expenses. If you fall into one of these roles, you can claim the difference between the IRS standard mileage rate and the mileage rate your employer reimburses you. Claim unreimbursed expense deductions on Form 2106.

For example, if your employer reimburses mileage at a rate of $0.30 per mile. You can deduct the difference between the 2024 rate of $0.67 per mile and the reimbursed $0.30 per mile from your employer.

Can I deduct mileage for medical appointments and dental visits from my tax return?

The IRS allows you to deduct mileage for medical care if the transportation costs are mainly for—and essential to—the medical care.

I bought a new car for business purposes. I was paid a business mileage reimbursement, but can I still claim a depreciation deduction on my tax return?

As explained earlier, you cannot claim a deduction for the business use of your car unless you are a reservist in the Armed Forces, qualified performing artist, fee-basis state or local government official, or an employee with impairment-related work expenses. If your employer’s mileage reimbursement was included in your W-2 wages (reported in box 1), you can deduct your car expenses. If your employer’s reimbursement was reported on your W-2 in box 7, code L, the amount has to be subtracted from your car expenses. In any case, if you’re using the standard mileage rate you cannot also deduct depreciation because the standard mileage rate includes a depreciation component.

Get help claiming mileage deductions

You may need assistance with claiming mileage on your taxes. That’s why H&R Block is here to help.

Have a side business? Take control of your taxes and get every credit and deduction you deserve. File with H&R Block Online Deluxe (if you have no expenses) or H&R Block Self-Employed Online (if you have expenses) for easy tax preparation.

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