If you use your personal vehicle for business or other specific needs, you may be eligible to claim the standard mileage deduction on your federal tax return. This deduction allows taxpayers to write off vehicle-related expenses based on the number of miles driven, using IRS-approved rates. The standard mileage deduction can significantly reduce your taxable income, especially for self-employed individuals, freelancers and small business owners.Â
A financial advisor can help you maximize your deductions without triggering IRS scrutiny.
How the Standard Mileage Deduction Works
The standard mileage deduction allows eligible taxpayers to deduct vehicle-related expenses based on the number of qualified miles driven during the tax year. Instead of tracking gas, repairs, insurance and depreciation individually, you apply a flat rate (set by the IRS each year) to your mileage. This offers a simpler alternative to the actual expense method. The deduction can apply to business travel, medical-related travel, charitable volunteer work, or moving expenses (for active-duty military).
To qualify for the standard mileage deduction, you must own or lease the vehicle and use it for work-related travel. That means commuting between home and a regular workplace doesn’t count. Self-employed individuals and small business owners commonly use this deduction. Employees are generally not eligible unless they’re reservists, qualified performing artists or fee-based government officials.
Calculating the deduction is straightforward: Track your qualified miles throughout the year, then multiply that figure by the applicable mileage rate. For example, if you drove 5,000 business miles and the IRS rate is $0.67 per mile, your deduction would be $3,350. To substantiate your claim, the IRS requires detailed records of your mileage, including the date, purpose and number of miles driven for each trip. Logging mileage in a spreadsheet, app or mileage logbook can help you stay organized.
Self-employed or small business owners must use Schedule C when filing taxes. You must choose either the standard mileage method or the actual expense method for the entire tax year. You cannot switch between the two for the same vehicle.
Standard mileage rates vary depending on the purpose of the vehicle use. The IRS adjusts these rates every year to reflect changes in gas prices and other costs. These rates apply to miles driven in 2024 for tax returns filed in 2025:
- Business: $0.67 per mile. This applies to self-employed individuals, contractors or business owners who use a personal vehicle for business-related travel. It does not include commuting.
- Charity: $0.14 per mile. This rate applies to miles driven while performing volunteer work for a qualified charitable organization.
- Medical or moving: $0.21 per mile. This rate is available for travel related to qualified medical care or moving expenses. Only active-duty members of the Armed Forces can claim the moving deduction.
These mileage rates apply to miles driven in 2025 for tax filings submitted in 2026. Compared with the 2024 rates, the business mileage rate has increased by $0.03, while the rates for charitable and medical or moving mileage remain unchanged.
- Business: $0.70 per mile. The higher rate reflects increased operating costs such as fuel and maintenance for business vehicle use.
- Charity: $0.14 per mile. This rate remains fixed by law and does not fluctuate with market conditions.
- Medical or moving: $0.21 per mile. This continues to apply to eligible medical-related travel and military moves.
Other Mileage Deductions Explained
Beyond business, the IRS acknowledges several less common mileage deductions that can still provide savings in specific situations.
For example, mileage related to volunteer work for a qualified 501(c)(3) nonprofit organization is deductible at the charity rate. This includes driving to and from volunteer events, meetings or service locations. While the rate is lower than the business mileage rate, it’s still a valuable deduction for regular volunteers.
If you or your dependents travel for doctor visits, hospital stays or other qualified medical care you can deduct medical mileage. This includes driving to pharmacies or therapy sessions prescribed by a doctor. The medical expense deduction is subject to a threshold. Medical expenses must exceed 7.5% of your adjusted gross income to be deductible on Schedule A.
Bottom Line
The standard mileage deduction offers a convenient way to reduce your taxable income for qualified vehicle use. With separate rates for business, medical, charitable and moving-related travel, it’s important to understand how each category applies to your situation and to keep accurate records throughout the year. The simplicity of applying a flat mileage rate, rather than itemizing every vehicle-related cost, makes this a preferred method for many taxpayers, especially freelancers and self-employed professionals.
Tax Planning Tips
- A financial advisor can help you mitigate risk for your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s tax return calculator has updated brackets and rates to help you estimate your next refund or balance.
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