Standard Mileage Rate

When you use your personal vehicle for business, you have two options for deducting the cost: the standard mileage rate or the actual expense method. The standard mileage rate is simpler — you multiply your business miles by the IRS rate (70 cents per mile in 2025).

To use the standard mileage rate, you must choose it in the first year you use the vehicle for business. You cannot switch from the actual expense method to the standard mileage rate in later years (though you can switch from standard to actual).

The actual expense method includes gas, insurance, repairs, maintenance, depreciation, lease payments, registration, and garage rent — prorated by the percentage of business use. This method often yields a larger deduction for expensive vehicles with high business use.

Regardless of which method you choose, you must maintain a contemporaneous mileage log. This should include the date, destination, business purpose, and miles driven for each trip. Many business owners use apps like MileIQ or Everlance to automate this tracking.

Commuting miles (home to regular office) are never deductible. However, trips from your home office to client sites, meetings, or a secondary work location are deductible business miles.