Can I switch between the standard mileage rate and actual expenses?

You can choose either method in the first year you use a vehicle for business. If you use the standard mileage rate in year one, you can switch to actual expenses in later years (and vice versa for most owned vehicles). However, if you use actual expenses in year one, you generally cannot switch to the standard rate for that vehicle. For leased vehicles, you must use the same method for the entire lease period.

What counts as a mileage log?

The IRS requires a contemporaneous record for each business trip: the date, starting and ending locations (or odometer readings), miles driven, and business purpose. A dedicated mileage tracking app, a spreadsheet, or even a paper logbook all work — what matters is that you record it at or near the time of the trip, not reconstructed from memory at year-end.

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

You can only deduct the business-use percentage of your vehicle. For example, if you drove 15,000 total miles and 10,000 were for business, your business-use percentage is 66.7%. With the standard mileage rate, you simply multiply your business miles by $0.70 — personal miles are automatically excluded.

Guides · Vehicle

Mileage Deduction Guide (2025): $0.70/Mile IRS Rate

2025 IRS Standard Mileage Rate

$0.70

per business mile driven

Who can claim the mileage deduction?

The business mileage deduction is available to self-employed workers who file Schedule C. This includes freelancers, contractors, gig workers, sole proprietors, and single-member LLC owners.

W-2 employees cannot deduct unreimbursed mileage under current tax law (since 2018). If your employer doesn't reimburse your driving, that cost is not deductible for employees.

What counts as business mileage?

Qualifies

Driving to meet clients or customers
Traveling to job sites or workplaces (not your home office)
Trips to buy business supplies or equipment
Driving to business meetings or networking events
Travel between multiple work locations
Rideshare and delivery driving (your driving-for-hire miles)

Does not qualify

Your regular commute from home to a regular office
Personal errands and non-business driving
Moving expenses (for most taxpayers post-2017)

Standard mileage rate vs. actual expenses

You have two methods for deducting vehicle costs. You choose one per vehicle in the first year.

Standard mileage rate

Multiply business miles by $0.70. Simple, no receipts for gas or repairs needed. Best if you drive a fuel-efficient or older vehicle with low operating costs.

Actual expenses

Deduct the business-use percentage of gas, insurance, repairs, depreciation, and registration. Better for expensive vehicles with high operating costs, but requires tracking all receipts.

Example calculation

Business miles driven10,000 miles

2025 IRS rate× $0.70

Total deduction$7,000

Use our free mileage calculator to estimate your deduction based on your actual miles.

How to track mileage (IRS requirements)

The IRS requires a contemporaneous mileage log — meaning recorded at or near the time of each trip. Each entry needs:

Date of trip
Starting location and destination
Miles driven
Business purpose

A mileage tracking app (MileIQ, Everlance, or the mileage feature in your bank app) is the easiest way to maintain an IRS-compliant log automatically.

Who benefits most from the mileage deduction?

High-mileage self-employed workers get the biggest payoff. The most common beneficiaries:

Rideshare drivers (Uber, Lyft)Delivery drivers (DoorDash, Instacart)Real estate agentsGeneral contractorsOutside sales repsHome service providersTraveling nurses (private practice)

Frequently Asked Questions

Related resources

Vehicle Mileage Calculator Tax Write-Offs for Uber Drivers Tax Write-Offs for Realtors

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MyTaxWriteOffs finds your business drives and calculates your deduction. $14/mo or $99/yr.

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Educational content only. This page is for informational purposes and does not constitute legal, tax, or financial advice. Tax laws vary and change frequently. Always consult a qualified CPA or licensed tax professional before making tax decisions.