travel expenses irs mileage

Everything You Need to Know About Claiming a Mileage Tax Deduction

Do you drive for business, charity or medical appointments? Here are the details about claiming mileage on taxes.

About Claiming Mileage Tax Deductions

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While other options may benefit taxpayers more, deducting mileage is often the go-to as it's the easiest to calculate.

Key Takeaways:

• Mileage deductions can add up to significant savings for taxpayers.
• Self-employed workers and business owners are eligible for the largest tax-deductible mileage rate.
• Mileage can be deducted for volunteer work and medical care, but IRS restrictions limit the amount you can claim.
• The Tax Cuts and Jobs Act of 2017 eliminated the ability of employees to deduct mileage for unreimbursed job-related travel.
• Only active-duty military members are eligible to deduct mileage related to moving and only when their move occurs because of new orders.

Claiming a tax deduction for mileage can be a good way to reduce how much you owe Uncle Sam, but not everyone is eligible to write off their driving costs.

In the past, taxpayers had more options to deduct mileage and could claim unreimbursed travel while on the job.

“That’s not deductible anymore,” says Michelle Brown, managing director in the Kansas City, Missouri, office of accounting firm CBIZ.

The Tax Cuts and Jobs Act of 2017 eliminated itemized deductions for unreimbursed mileage and also significantly narrowed the mileage tax deduction for moving expenses. The latter can now only be claimed by active-duty military members who are relocating because of new orders.

Still, a mileage deduction exists for the following situations:

• Business mileage for the self-employed.
• Mileage related to medical appointments.
• Mileage incurred while volunteering for a nonprofit.

You need to know the rules for claiming mileage on your taxes and, more importantly, you need to keep careful records. Here's a breakdown of everything you need to know about how to claim mileage on your taxes.

Current Tax Deductible Mileage Rates

How much you can deduct for mileage depends on the type of driving you did. Business mileage is most common, but you can also deduct mileage accrued for charitable purposes or for receiving medical care.

“Those are itemized deductions,” says Nicole Davis, a CPA and member of the FreshBooks Accounting Partner Program. “That mileage rate is a lot lower than the business mileage rate.”

For the 2023 tax year, the IRS approved the following standard mileage rates:

• Self-employed/Business:  65.5 cents per mile.
• Charity:  14 cents per mile.
• Medical and Moving:  22 cents per mile.

For the 2024 tax year, standard mileage rates are:

• Self-employed/Business:  67 cents per mile.
• Medical and Moving:  21 cents per mile.

Mileage rates for business, medical care and moving are typically adjusted once at the start of each year. However, on rare occasions, the IRS might adjust rates mid-year to account for inflation or other economic factors. This most recently happened in 2022 and 2011. However, the standard mileage rate for charity is set by statute so the IRS can't adjust it.

Self-Employed Workers: What Mileage Is Deductible

When it comes to mileage tax deductions, the self-employed mileage deduction is the largest one available. It can be valuable to anyone with their own business, but especially for those working in the gig economy as delivery drivers, says Duke Alexander Moore, an enrolled agent and the CEO and founder of Duke Tax in Dallas, Texas, which specializes in tax services for content creators and entrepreneurs.

You can also rack up deductible business miles from meeting with clients, traveling to secondary work sites or running errands to pick up supplies. If a person drives for both business and personal purposes, only the miles related to the business are deductible. Business miles are considered only those driven from a person's principal place of business.

“We never want to confuse a commute as business travel,” Moore says.

Driving from home to a principal place of business is considered a commute, even for those who are self-employed or small business owners. Only those who have a home office as their principal place of business can deduct mileage when driving to and from home for business-related purposes.

How to Claim Mileage on Taxes

Self-employed workers can claim their mileage deduction on their Schedule C form, rather than the Schedule A form for itemized deductions. Mileage for self-employed workers isn't subject to any threshold requirements. In other words, all miles are deductible regardless of how much a person drives for work.

Is mileage considered an office expense? No, it doesn’t get lumped in with office expenses on a Schedule C. Instead, mileage can be claimed on line 9 for car and truck expenses.

Alternatively, people can claim their actual vehicle expenses for maintenance, repairs and fuel. Workers who use a vehicle for personal travel as well can deduct only a prorated percentage of expenses based on business use.

Taxpayers may want to calculate which option will result in the higher deduction, but for most, deducting mileage is easier and will result in greater tax savings.

“The standard mileage deduction is the gift that keeps giving,” Davis says.

Regardless of which method you use – standard mileage rates or actual expenses – plan to stick with it for the duration of the time you own a vehicle. Switching from mileage to actual costs could be difficult since you may need to factor in calculations for depreciation.

The IRS states that taxpayers who want to use standard mileage for their deductions must do so in the first year the vehicle is available for business use. Meanwhile, those who operate a fleet of vehicles – five or more – can deduct only actual expenses.

Itemize Your Deductions to Claim Medical and Charitable Mileage

Self-employed people aren't the only ones who can take advantage of mileage tax deductions, but everyone else will need to file a Schedule A form and itemize their deductions if they want to get in on the tax savings. Those who itemize may be able to deduct mileage for medical care and charity work.

But be aware that these deductions are not nearly as lucrative as those for self-employed workers. That’s because the reimbursement rates for medical and charitable mileage are considerably lower than what's offered for business travel. What’s more, there are thresholds and other limits on these deductions.

“Typically, you won’t see most people taking advantage of these,” Moore says.

Mileage accrued when driving to and from doctor visits, the pharmacy and the hospital can all count toward a medical deduction . But there's a catch: Only medical expenses – both mileage and other bills combined – in excess of 7.5% of your adjusted gross income can be deducted.

While it can be difficult to exceed the income threshold, if you had significant medical bills last year, it can be worthwhile to add up your annual mileage for doctor visits to boost your deduction amount.

If you drive to volunteer at your favorite nonprofit, that mileage is deductible as part of your charitable donations. The IRS allows volunteers to claim 14 cents per mile, but you have to be doing the volunteering yourself. You can't, for example, be driving a child to a volunteer activity. There is no threshold requirement for claiming these miles.

“In order to take advantage (of these deductions), you need to be itemizing,” Brown says.

With the standard deduction for married couples filing jointly set at $27,700 in 2023, Brown says few people are able to claim charity and medical mileage deductions because they get a greater benefit from taking the standard deduction than they do from itemizing.

The IRS Will Want to See Your Records

While deducting mileage can save tax dollars, think twice before claiming travel time you can't document. If you're audited , the IRS will want to see a log that includes dates, destinations and the reasons for travel. These travel logs should record exact mileage amounts.

“It’s something called substantiation,” Moore says. What’s more, the log is supposed to be updated throughout the year as a person drives.

“It could be handwritten; it could be an Excel spreadsheet; it could be an app,” Brown says.

MileIQ, TripLog and Everlance are a few of the apps available that automatically detect travel and log every trip. Users can then categorize their drives by purpose and run reports to document deductions. If you didn't track your travel in real time, Davis suggests looking back at your calendar to create a log before you claiming the deduction on your tax return.

During an audit, taxpayers will need to provide evidence of when they traveled and why. You may be able to piece that together based on bank records of purchases, calendar events and even your phone’s GPS tools.

Still, there is no guarantee the IRS will accept documentation compiled after the fact. It's better to keep a log right from the start rather than risk a deduction being disallowed during an audit.

What Happens During an IRS Tax Audit

Kimberly Lankford March 14, 2023

Tags: money , personal finance , taxes , tax deductions , tax returns , IRS

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IRS Standard Mileage Rates 2024: What They Are, How They Work

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Table of Contents

IRS mileage rates 2024

Irs standard mileage rate for business, calculating standard mileage vs. actual expenses for business, other irs mileage rate types, how to claim tax deductions using irs mileage rates, tracking your mileage.

Certain taxpayers can deduct mileage from vehicle use related to business, charity, medical or moving purposes

To take the deduction, taxpayers must meet use requirements and may have to itemize on their returns if claiming certain types of mileage.

For 2024, the IRS' standard mileage rates are $0.67 per mile for business, $0.21 per mile for medical or moving, and $0.14 per mile for charity.

If you drive for your business or plan to rack up some miles while volunteering this year, you might be eligible to deduct some of that mileage on your tax return.

To qualify for this deduction, the miles must have been driven for qualifying business, medical, moving or charity purposes, and you may have to itemize on your return to claim the tax break. Rates are valid for electric, PHEV, gas, and diesel-fueled cars.

For the 2024 tax year (taxes filed in 2025), the IRS standard mileage rates are:

67 cents per mile for business.

14 cents per mile for charity.

21 cents per mile for medical/moving.

If you’re self-employed or work as a contractor, you might be able to deduct the cost of using your car for business purposes. Your tax deduction depends on how you use your vehicle. Commuting to work is generally not deductible mileage, but you may be able to deduct mileage for business-related trips, such as those made to clients, meetings or temporary workplaces [0] Internal Revenue Service . Publication 463: Travel, Gift, and Car Expenses . Accessed May 3, 2024. View all sources .

You can also choose whether to deduct standard mileage using the rates above versus actual expense (e.g., repairs, depreciation, gas, and so forth), but you can't deduct both. Expenses for tolls or parking fees related to business use, however, are separately deductible regardless of which method you use [0] Internal Revenue Service . Topic no. 510, Business Use of Car . Accessed Jan 17, 2024. View all sources .

There are two options for calculating the business deduction for the use of your vehicle.

1. Standard mileage deduction

This is the most straightforward way of calculating your driving expense: simply multiply the number of business miles by the IRS mileage rate. However, you’ll need to keep a record of your business-related mileage.

To use the standard IRS mileage deduction method, you must own or lease the car. But the rules for business mileage deductions can be complex, especially if you use lots of vehicles for business. The IRS website has more details [0] Internal Revenue Service . Topic No. 510, Business Use of Car . Accessed May 3, 2024. View all sources .

2. Actual expenses

If you don’t want to track your mileage, you could track and deduct the actual expenses you incur while using your vehicle for business purposes. These expenses may include:

Depreciation.

Lease payments.

Registration fees.

Gas and oil.

» MORE: See what other tax breaks you can take if you’re self-employed

IRS standard mileage rate for volunteering and charitable activities

If you use your car to help a charity or to go somewhere to volunteer, the mileage can be deductible. You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to using your car to give services to a charitable organization. Also, you can't deduct repair and maintenance costs, depreciation, registration fees, tires, or insurance [0] Internal Revenue Service . About Publication 526, Charitable Contributions . Accessed May 3, 2024. View all sources .

» MORE: See what else counts as a charitable deduction

IRS standard mileage rate for moving

Only active-duty military members can deduct mileage related to moving. The move must be related to a permanent change of station [0] Internal Revenue Service . Instructions for Form 3903 . Accessed May 3, 2024. View all sources .

IRS standard mileage rate for medical

If you used your car for medical reasons, you may be able to deduct the mileage. "Medical reasons" include:

Driving to the doctor, hospital or other medical facility.

Driving a child or other person who needs medical care to receive medical care.

Driving to see a mentally ill dependent if the visits are recommended as part of treatment.

You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to the use of your car for medical purposes. Also, you can't deduct repair and maintenance costs, depreciation or insurance.

Mileage isn’t the only transportation cost you might be able to deduct as a medical expense. IRS Publication 502 has the details. Here’s a big caveat: In general, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income .

» MORE: See what else you might be able to deduct as a medical expense

If you're deducting mileage for moving, medical or charity purposes, you'll need to itemize on your tax return in order to claim the tax deduction. Itemizing means you’ll need to set aside extra time when preparing your returns to fill tax forms Form 1040 and Schedule A , as well as supporting schedules that feed into those forms.

If you're self-employed, you’ll claim your mileage deduction as a business expense on Schedule C . If you file your taxes online, the software will ask about your mileage during the interview process and calculate the deduction.

» Ready to file? Check out NW's top tax software picks

This is important because if you’re audited, you may need to show a log of the miles you drove to substantiate your deduction.

There are many ways to track your mileage. Something as simple as keeping a pen and paper in the glove compartment can suffice, but a quick trip to Google or your phone's app store will reveal a variety of tools that can streamline things.

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What are the two mileage rates for 2022?

For the 2022 tax year, you're looking at two mileage rates for business use. A rate of 58.5 cents a mile applies to travel from January through June last year, and it's 62.5 cents per mile for trips from July through December.

Just to make things a tad more confusing, the IRS also announced that beginning in January, the standard mileage rate for business use is going up again to 65.5 cents per mile driven for business purposes in 2023. Remember, though, that rate does not apply to your 2022 tax return.

Another good tip: These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

Who can even take a mileage deduction?

As you're preparing to do your 2022 tax return, keep in mind that getting a tax break for claiming mileage isn't as simple as it used to be .

The IRS business standard mileage rate cannot be used to claim an itemized deduction for unreimbursed employee travel expenses under the Tax Cuts and Jobs Act, which remains in effect through 2025. If you're working for an employer who doesn't reimburse mileage for your travel, you're out of luck.

Taxpayers cannot deduct mileage for their regular moving expenses under the Tax Cuts and Jobs Act of 2017 either.

Taxpayers can claim a deduction for moving expenses if they are members of the armedforces on active duty and are moving under orders to a permanent change of station.

The IRS standard mileage rate is a key benchmark that's used by the federal government and many businesses to reimburse their employees for their out-of-pocket mileage expenses.It's also key at tax time for many, including self-employed individuals, who can claim business mileage on a tax return.

The IRS rate reflects the cost to fill up your tank, as well as other expenses associated with driving for business. The IRS notes: "The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs."

New parents and taxes: 2023 tax season guide for new parents: What to know about the Child Tax Credit and more

Your 2023 tax guide: Are you ready to file your taxes? Here's everything you need to know to file taxes in 2023.

Tax break remains for self-employed

The mileage deduction is often key for those who are running their own businesses.

A self-employed taxpayer who files a Schedule C can use the standard rate to deduct expenses from mileage incurred while doing business.

Besides the standard mileage rate, taxpayers have another option for calculating the deduction – actual expenses.  

It is more complex for taxpayers to break down the actual costs for the deduction than to simply use the standard mileage rate. For example, you’d have to figure out what it costs to operate the car or truck for the portion of miles dedicated to business. That means taking into account the cost of insurance, gas, repairs, tires and other expenses. 

You can only use one method – the standard mileage rate or the business portion of actual expenses – for the same vehicle. 

"Many of my Schedule C clients use the mileage due to its simplicity," said George W. Smith, partner at Andrews Hooper Pavlik PLC in Bloomfield Hills, Michigan. "The only record they need to keep is mileage."

Some clients, he said, still go with actual expenses but that has been decreasing over time.  

Mileage can be used by those who are self-employed people in a variety of fields, he said, as well as those who own rental properties and claim mileage for trips for repairs,  maintenance, or collecting rent.

What's your tax bracket?  What are the 2022 US federal tax brackets? What are the new 2023 tax brackets? Answers here

Before you file your taxes, check these tips: Tax return season 2023: What to know before filing your taxes

Medical mileage can be deducted – sometimes

As for medical mileage, it’s included with medical expenses Schedule A. 

Lower mileage rates apply in different circumstances. 

The IRS rate is 18 cents a mile for the first half of 2022 and 22 cents a mile  for the second half of 2022 for deductible medical or moving expenses. (The medical or moving expense rate remains at 22 cents a mile for 2023.)

Mileage for medical purposes could be deducted if the transportation costs are mainly for – and essential to – your medical care. You can deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income. And you'll have to itemize deductions – instead of taking the standard deduction – to claim medical expenses. Generally, you need a lot of medical expenses to garner any deduction.

An IRS rate of 14 cents per mile for mileage relating to work for charitable organizations remained at one rate throughout 2022 since that rate is set by statute, and it will remain at 14 cents a mile for 2023.

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How prices caused many twists and turns at tax time

Gas prices at the pump shocked drivers from one fill-up to the next throughout much of 2022.

After Russia launched a full-scale invasion of Ukraine in late February of last year , oil prices surged above $100 a barrel for the first time since 2014.

The U.S. national average peaked at $5.034 a gallon on June 16, 2022, according to data from GasBuddy.

In early June, the IRS took a fairly unusual step to make a special adjustment and raise the mileage rate by 4 cents a gallon for business travel during the last six months of 2022 because of the surge in gas prices .

Gas prices pulled back to a national average of $3.053 a gallon by Dec. 26, according to GasBuddy. And so far in 2023, we're seeing some relief but are still not edging below $3 a gallon on average.

The U.S. average was $3.386 a gallon as of Jan. 23, according to GasBuddy, up 9.3 cents from the week earlier and up 29.5 cents from a month earlier.

This year isn't expected to offer a smooth ride for drivers. "It could be expensive,” said Patrick De Haan, head of petroleum analysis at GasBuddy, who predicts that the national average could climb above $4 a gallon as early as May.

"Curveballs are coming from every direction," De Haan said.

More of your 2022 tax season questions answered

• File your taxes early for a chance to double your refund money with Jackson Hewitt
• 1099, W-4, W-2, W-9, 1040: What are these forms used for when filing your taxes?
• What are the 2022 US federal tax brackets? What are the new 2023 tax brackets? Answers here
• 2023 tax season guide for new parents: What to know about the Child Tax Credit, EITC and more
• IRS may owe you from 2020 taxes. Here's why and what you need to do to find out if you're owed
• What is OASDI tax on my paycheck? Here's why you and your employer pay this federal tax
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• Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.
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• Companies can deduct full cost of business meals on 2022 tax returns
• Who has to file a tax return:  It's not necessary for everyone. Here are the rules.
• What is capital gains tax in simple terms? A guide to 2023 rates, long-term vs. short-term

Contact Susan Tompor:  [email protected] . Follow her on Twitter  @ tompor . To subscribe, please go to  freep.com/specialoffer.  Read more on  business  and sign up for our  business newsletter .

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• Tax Planning

How To Calculate Mileage Deductions on Your Tax Return

Mileage rates for 2022 and 2023, how to calculate mileage for taxes, who can deduct mileage for business, who can deduct mileage for moving, who can deduct mileage for medical reasons, who can deduct mileage for charitable reasons, how to claim mileage on your taxes, frequently asked questions (faqs).

Luiz Alvarez / Getty Images

If you use your vehicle for business or certain other activities, like traveling for medical treatment or charitable work, you may be able to deduct your costs for tax purposes, but the Internal Revenue Service (IRS) rules for doing so are strict.

Learn the IRS rules for deducting your mileage on your tax return, including how to choose a mileage method, what records you need, and how to claim the deduction at tax time.

Key Takeaways

• For business driving, you can choose between using the standard mileage rate or your actual costs when entering your deduction on Schedule C of your Form 1040.
• When calculating the deduction for miles driven for moving, you must be active-duty military transferring to a new permanent post.
• To deduct your expenses for driving to receive medical care, you can choose between standard mileage rates or actual costs.
• To claim mileage for traveling for volunteering work, you can use the standard mileage rate for charity work or you can deduct the cost of oil, gas, tolls, and parking fees.

The chart above shows the standard IRS mileage rates for tax years 2022 and 2023. The standard mileage rate is the amount you can deduct based on miles driven rather than your actual vehicle expenses.

Businesses often use these rates to reimburse employees for using their personal vehicles for job-related travel. If you’re self-employed, you can use them to determine your own deduction.

There are two ways to calculate your mileage for your tax return : using the standard mileage rate or calculating your actual costs.

Standard Mileage

The standard mileage rate is a simplified way of deducting your mileage. It is based on the number of miles driven instead of your actual costs. You keep track of your miles driven for IRS-approved purposes (business, medical activity, moving, or charitable work). Then, you multiply them by the correct mileage rate.

For example, if you drove your vehicle 1,000 miles for IRS-approved business purposes in 2022, multiply 1,000 miles x $0.58 per mile. You’ll be able to deduct $580.

To use the standard mileage rate for a car you own, you need to choose this method for the first year you use the car for business. You can then choose between deductions based on the standard mileage rate or actual costs in subsequent years. If you choose the standard mileage rate for a vehicle you’re leasing, you’ll need to stick with that method for the entire lease.

If you choose this method, you’ll need to log your miles to calculate your deduction at the end of the year. Keep a written mileage log in your vehicle, or download a mileage app to keep track.

Actual Costs

You can choose to deduct the actual costs of using your vehicle instead of deducting your mileage. If you’re using a vehicle for both business and personal reasons, you can deduct only the costs for business use. You can include the following expenses:

• Oil, tires, and repairs
• License and registration fees
• Depreciation of the vehicle or lease payments due to the percentage of miles you drive it for business purposes

You’ll need to keep records, such as receipts, to document your vehicle expenses. They will allow you to support your deduction in case you're audited. You should keep old tax records for at least three years after you’ve filed your return.

If you qualify for both mileage methods, try calculating both to see which results in a bigger deduction.

You can’t claim business mileage deductions for your commuting expenses between your home and your regular place of work. Your employer may reimburse you for some job-related travel, such as if you drive from your primary work location to meet with clients.

However, you aren’t allowed to deduct mileage that your employer doesn’t reimburse you for. The only exceptions are for:

• Military reservists
• State and local employees paid on a fee basis
• People who have job expenses related to an impairment
• Some performing artists

The rules are different if you’re self-employed, though. You still can’t deduct your mileage if you commute from your home to your primary business , but you can if you’re traveling from your business to meet with clients or visit a project site, even if your business is based out of your home.

The tax rules for ride-share drivers are similar. Ride-share drivers can deduct mileage according to the standard IRS rate or their actual costs.  

You can deduct your mileage when moving only if you’re active-duty military and you’ve been ordered to a permanent change of station. Otherwise, this mileage deduction isn’t allowed.

You can take a medical tax expense deduction only if your overall unreimbursed medical costs exceed 7.5% of your adjusted gross income (AGI). You can deduct your mileage at the standard rate of 18 cents per mile for 2022 and 22 cents per mile for 2023, or you can deduct your actual costs of gas and oil. Deducting parking costs and tolls is also allowed.

You’re allowed to deduct mileage for your own treatment. You can also claim this deduction if you’re transporting a child to receive treatment or visiting a mentally ill dependent as part of a recommended treatment.

If you travel to perform volunteer work, you can deduct the standard amount for the year. Alternatively, you can deduct your costs of oil and gas but not other vehicle expenses like depreciation, maintenance, insurance, and fees.

You can also deduct your costs for parking and tolls while volunteering, no matter which deduction method you choose.  

If you’re claiming a deduction for business mileage, you’ll report it using Schedule C on Form 1040. To claim mileage deductions for moving, medical treatment, or charitable deductions, you’ll need to itemize on your return. You’ll do so using Schedule A on your Form 1040.

No matter what type of mileage you’re deducting, be sure to keep thorough records. Keep a mileage log if you use the IRS standard mileage rate, or hold onto receipts if you’re deducting your actual costs. Be sure to store them with your other tax records so you’ll be covered in the event of an audit.

Is mileage for taxes round-trip or one-way?

If you are using the standard mileage rate, multiply it by the total, round-trip mileage that you drove for business, moving, medical, or charitable reasons.

How can I keep track of mileage for taxes?

If you are keeping a written log for a mileage deduction , you should include the date, destination, purpose, and miles driven for each trip.

IRS. " IRS Issues Standard Mileage Rates for 2023; Business Use Increases 3 Cents Per Mile ."

IRS. " Topic No. 510 Business Use of Car ."

IRS. " Moving Expense to and From the United States ."

IRS. " Here's Who Qualified for the Employee Business Expense Deduction ."

IRS. " Publication 463 (2022), Travel, Gift, and Car Expenses ."

IRS. “ Publication 502, Medical and Dental Expenses .”

IRS. " Publication 526: Charitable Contributions ," Page 6.

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• 1. Make Sure You Qualify
• 2. Determine Your Method
• 3. Record Your Odometer

4. Maintain a Driving Log

• 5. Maintain Record of Receipts
• 6. Record Year-End Odometer

7. Record Mileage on Tax Return

8. retain the documentation, the bottom line.

• Deductions & Credits
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Track Your Mileage for Taxes in 8 Easy Steps

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

If driving is an essential part of your job, you may qualify to deduct the cost of travel on your federal income tax return . The Internal Revenue Service (IRS) annually adjusts the allowable deductible mileage rate for inflation.

Below are eight easy steps that you can follow to claim this tax deduction.

Key Takeaways

• The IRS allows taxpayers to claim deductions for the use of a vehicle.
• The standard mileage deduction requires you to log odometer readings from the beginning and end of a qualifying trip, along with its purpose and date.
• Taxpayers can also claim vehicle expenses, such as lease payments, insurance, gas, and tolls.
• Qualified expenses are eligible if you drive for business or medical purposes, move as an active-duty military member, or work for a charitable organization.

1. Make Sure You Qualify for Mileage Deduction

The most common reason for claiming the mileage deduction is travel from the office to a worksite or from the office to a second business-related location. You can also claim the deduction if you're using your vehicle to:

• Conduct business-related errands
• Traveling to and from medical appointments if you take the deduction for medical expenses
• Move between posts if you're an active member of the military
• Work with charitable organizations

In addition to mileage, you can claim unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI) .

2. Determine Your Method of Calculation

You can choose between two methods of accounting for the mileage deduction amount. The first is the standard mileage deduction, which requires tracking how many qualified miles you drive during the tax year. The second option is to claim deductions for vehicle expenses while performing qualified activities.

To claim the standard mileage deduction, you must maintain a log of your qualifying miles. Mileage rates for the 2023 tax year include:

• For business: 65.5 cents per mile
• For medical or moving for qualified active-duty Armed Forces members: 22 cents per mile
• For charitable organization services: 14 cents per mile

To claim the deduction for vehicle expenses, you must retain all receipts and relevant cost of driving documentation. You can factor in depreciation, lease payments, registration expenses, oil and gas, repairs, tires, tolls, parking, insurance, and any other costs that are directly related to your vehicle.

3. Record Your Odometer at the Start of the Tax Year

To take the standard mileage deduction, you'll have to report the total miles the vehicle was driven in the tax year. This figure is reported on Form 2106: Employee Business Expenses . Record the vehicle's odometer at the beginning and the end of the tax year.

But what if you purchase a used vehicle mid-year? In this case, record the odometer reading from the first day it is deployed until the end of the tax year.

An employee cannot claim the cost of a vehicle as an "unreimbursed employee travel expense as a miscellaneous itemized deduction" between December 2017 and January 2026.

You must keep a log of the total miles driven if you choose the standard mileage deduction. The IRS specifies:

• At the start of each trip, record the odometer reading and list the purpose, starting location, ending location, and date of the trip.
• After the trip, the final odometer must be recorded and then subtracted from the initial reading to find the total mileage for the trip.

Your mileage log must be precise and maintained consistently.

5. Maintain a Record of Receipts

If you choose the actual expense deduction, you don't need to maintain or record your mileage. Instead, keep copies of relevant receipts and documentation. Each document must include the date, dollar amount of the service or service purchased, and description of the product or service needed. The expense must be incurred within the tax year you submit the claim.

6. Record Your Odometer at the End of the Tax Year

At the end of the tax year , you should record the ending odometer reading. This figure is used in conjunction with the odometer reading at the beginning of the year to calculate the total miles driven in the car for the year. The information, including the percentage of miles driven for business purposes, is required on Form 2106.

When completing your tax return, list the total miles driven on Form 2106, Line 12. This figure is calculated by the standard mileage rate allowed by the IRS to determine the dollar deductible amount.

If you're using the actual expenses method, you'll need to group receipts of your expenses by gasoline, oil, repairs, insurance, vehicle rentals, and depreciation.

You must retain the documentation relating to a mileage deduction for at least three years for the IRS. Make sure you keep copies of the records and a personal copy and create a new log for each tax year.

What Is the Federal Tax Deduction for Mileage?

For 2023, the federal tax deduction for mileage is 65.5 cents per mile for business use, 22 cents per mile for medical purposes and if you're claiming moving expenses as an active military member going to a new post, and 14 cents per mile for charitable services.

Is It Better to Claim Mileage or Gas for Taxes?

Claiming mileage or gas for taxes depends entirely on your situation. If you choose to take the standard mileage, you can claim 65.5 cents per mile during 2023. If you want to claim gas, you must keep all your receipts. You can also claim other vehicle-related expenses, such as insurance, depreciation, lease payments, parking, toll, and repairs. You are not permitted to claim mileage and expenses at the same time.

What Is the Tax Deduction for Medical Mileage and When Volunteering?

For 2023, the tax deduction for medical mileage is 22 cents per mile. The same rate applies to active duty military members who move to a new post. For those who volunteer, the tax deduction for mileage for the tax year 2023 is 14 cents per mile.

If you qualify, you can claim mileage or vehicle expenses on your tax return. Your choice depends on how often and how far you drive for business, medical care, or volunteer work. The IRS requires clear and concise documentation to support your claims.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 13-14.

Internal Revenue Service. " Publication 502, Medical and Dental Expenses ," Page 14.

Internal Revenue Service. " Topic No. 455, Moving Expenses for Members of the Armed Forces ."

Internal Revenue Service. " Publication 526, Charitable Contributions ," Pages 5-6.

Internal Revenue Service. " Topic No. 502 Medical and Dental Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 14-16.

Internal Revenue Service. " IRS Issues Standard Mileage Rates for 2023 ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 15, 24-27.

Internal Revenue Service. " Instructions for Form 2106, Employee Business Expenses ," Page 5.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 26.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 24-27.

Internal Revenue Service. " Form 2106, Employee Business Expenses ," Page 2.

Internal Revenue Service. " How Long Should I Keep Records? "

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IR-2022-234: IRS issues standard mileage rates for 2023; business use increases 3 cents per mile

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Issue Number:    IR-2022-234

Inside this issue.

IRS issues standard mileage rates for 2023; business use increases 3 cents per mile

WASHINGTON — The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.                                

Beginning on Jan. 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:  

• 5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
• 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.  

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.  

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.  

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces .  

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.  

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.  

Notice 2023-03 contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2023 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

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Mileage Reimbursement Calculator

You can use this mileage reimbursement calculator to determine the deductible costs associated with running a vehicle for medical, charitable, business, or moving.

You can calculate mileage reimbursement in three simple steps:

• Select your tax year.
• Input the number of miles driven for business, charitable, medical, and/or moving purposes.
• Click on the "Calculate" button to determine the reimbursement amount.

Tax Year   2024 2023 2022 2021 2020 2019 2018 2017 2016 2015

Business Rate (1/1 through 6/30/2022) $ per mile

Business Rate (7/1 through 12/31/2022) $ per mile

Medical / Moving Rate (1/1 through 6/30/2022) $ per mile

Medical / Moving Rate (7/1 through 12/31/2022) $ per mile

Charitable Rate $ per mile

Miles Driven in H1  2022 for Business Purposes  

Miles Driven in H1  2022 for Medical Purposes  

Miles Driven in H2  2022 for Business Purposes  

Miles Driven in H2  2022 for Medical Purposes  

Miles Driven in 2022 for Charitable Purposes  

Understanding Mileage Reimbursement

If you regularly use your personal vehicle for work purposes, you are permitted to deduct the vehicle expenses from your tax return. You have two options available to you when calculating mileage expenses:

• You can keep all your receipts when you pay for any services associated with using your car for work purposes. For example, gas, oil, parking, insurance, lease payments , maintenance, repairs, etc.
• You can simply multiply the number of miles you have driven for work purposes by the IRS standard mileage rate, changes on an annual basis. This approach is referred to as the standard mileage deduction. You can also use this approach to deduct any expenses that you incur while driving for charity, medical, or moving purposes.

The standard mileage rates for 2024 are as follows:

2024 Standard Mileage Rates: IRS Notice 2024-08

IRS Standard Mileage Rates

You may also be interested in our free Lease Mileage Calculator

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Everything You Need to Know About the Business Travel Tax Deduction

Justin is an IRS Enrolled Agent, allowing him to represent taxpayers before the IRS. He loves helping freelancers and small business owners save on taxes. He is also an attorney and works part-time with the Keeper Tax team.

You don’t have to fly first class and stay at a fancy hotel to claim travel expense tax deductions. Conferences, worksite visits, and even a change of scenery can (sometimes) qualify as business travel.

What counts as business travel?

The IRS does have a few simple guidelines for determining what counts as business travel. Your trip has to be:

• Mostly business
• An “ordinary and necessary” expense
• Someplace far away from your “tax home”

What counts as "mostly business"?

The IRS will measure your time away in days. If you spend more days doing business activities than not, your trip is considered "mostly business". Your travel days are counted as work days.

Special rules for traveling abroad

If you are traveling abroad for business purposes, you trip counts as " entirely for business " as long as you spend less than 25% of your time on personal activities (like vacationing). Your travel days count as work days.

So say you you head off to Zurich for nine days. You've got a seven-day run of conference talks, client meetings, and the travel it takes to get you there. You then tack on two days skiing on the nearby slopes.

Good news: Your trip still counts as "entirely for business." That's because two out of nine days is less than 25%.

What is an “ordinary and necessary” expense?

“Ordinary and necessary” means that the trip:

• Makes sense given your industry, and
• Was taken for the purpose of carrying out business activities

If you have a choice between two conferences — one in your hometown, and one in London — the British one wouldn’t be an ordinary and necessary expense.

What is your tax home?

A taxpayer can deduct travel expenses anytime you are traveling away from home but depending on where you work the IRS definition of “home” can get complicated.

Your tax home is often — but not always — where you live with your family (what the IRS calls your "family home"). When it comes to defining it, there are two factors to consider:

• What's your main place of business, and
• How large is your tax home

What's your main place of business?

If your main place of business is somewhere other than your family home, your tax home will be the former — where you work, not where your family lives.

For example, say you:

• Live with your family in Chicago, but
• Work in Milwaukee during the week (where you stay in hotels and eat in restaurants)

Then your tax home is Milwaukee. That's your main place of business, even if you travel back to your family home every weekend.

How large is your tax home?

In most cases, your tax home is the entire city or general area where your main place of business is located.

The “entire city” is easy to define but “general area” gets a bit tricker. For example, if you live in a rural area, then your general area may span several counties during a regular work week.

Rules for business travel

Want to check if your trip is tax-deductible? Make sure it follows these rules set by the IRS.

1. Your trip should take you away from your home base

A good rule of thumb is 100 miles. That’s about a two hour drive, or any kind of plane ride. To be able to claim all the possible travel deductions, your trip should require you to sleep somewhere that isn’t your home.

2. You should be working regular hours

In general, that means eight hours a day of work-related activity.

It’s fine to take personal time in the evenings, and you can still take weekends off. But you can’t take a half-hour call from Disneyland and call it a business trip.

Here's an example. Let’s say you’re a real estate agent living in Chicago. You travel to an industry conference in Las Vegas. You go to the conference during the day, go out in the evenings, and then stay the weekend. That’s a business trip!

3. The trip should last less than a year

Once you’ve been somewhere for over a year, you’re essentially living there. However, traveling for six months at a time is fine!

For example, say you’re a freelancer on Upwork, living in Seattle. You go down to stay with your sister in San Diego for the winter to expand your client network, and you work regular hours while you’re there. That counts as business travel.

What about digital nomads?

With the rise of remote-first workplaces, many freelancers choose to take their work with them as they travel the globe. There are a couple of requirements these expats have to meet if they want to write off travel costs.

Requirement #1: A tax home

Digital nomads have to be able to claim a particular foreign city as a tax home if they want to write off any travel expenses. You don't have to be there all the time — but it should be your professional home base when you're abroad.

For example, say you've rent a room or a studio apartment in Prague for the year. You regularly call clients and finish projects from there. You still travel a lot, for both work and play. But Prague is your tax home, so you can write off travel expenses.

Requirement #2: Some work-related reason for traveling

As long as you've got a tax home and some work-related reason for traveling, these excursion count as business trips. Plausible reasons include meeting with local clients, or attending a local conference and then extending your stay.

However, if you’re a freelance software developer working from Thailand because you like the weather, that unfortunately doesn't count as business travel.

The travel expenses you can write off

As a rule of thumb, all travel-related expenses on a business trip are tax-deductible. You can also claim meals while traveling, but be careful with entertainment expenses (like going out for drinks!).

Here are some common travel-related write-offs you can take.

🛫 All transportation

Any transportation costs are a travel tax deduction. This includes traveling by airplane, train, bus, or car. Baggage fees are deductible, and so are Uber rides to and from the airport.

Just remember: if a client is comping your airfare, or if you booked your ticket with frequent flier miles, then it isn't deductible since your cost was $0.

If you rent a car to go on a business trip, that rental is tax-deductible. If you drive your own vehicle, you can either take actual costs or use the standard mileage deduction. There's more info on that in our guide to deducting car expenses .

Hotels, motels, Airbnb stays, sublets on Craigslist, even reimbursing a friend for crashing on their couch: all of these are tax-deductible lodging expenses.

🥡 Meals while traveling

If your trip has you staying overnight — or even crashing somewhere for a few hours before you can head back — you can write off food expenses. Grabbing a burger alone or a coffee at your airport terminal counts! Even groceries and takeout are tax-deductible.

One important thing to keep in mind: You can usually deduct 50% of your meal costs. For 2021 and 2022, meals you get at restaurants are 100% tax-deductible. Go to the grocery store, though, and you’re limited to the usual 50%.

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🌐 Wi-Fi and communications

Wi-Fi — on a plane or at your hotel — is completely deductible when you’re traveling for work. This also goes for other communication expenses, like hotspots and international calls.

If you need to ship things as part of your trip — think conference booth materials or extra clothes — those expenses are also tax-deductible.

👔 Dry cleaning

Need to look your best on the trip? You can write off related expenses, like laundry charges.

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Travel expenses you can't deduct

Some travel costs may seem like no-brainers, but they're not actually tax-deductible. Here are a couple of common ones to watch our for.

The cost of bringing your child or spouse

If you bring your child or spouse on a business trip, your travel expense deductions get a little trickier. In general, the cost of bring other people on a business trip is considered personal expense — which means it's not deductible.

You can only deduct travel expenses if your child or spouse:

• Is an employee,
• Has a bona fide business purpose for traveling with you, and
• Would otherwise be allowed to deduct the travel expense on their own

Some hotel bill charges

Staying in a hotel may be required for travel purposes. That's why the room charge and taxes are deductible.

Some additional charges, though, won't qualify. Here are some examples of fees that aren't tax-deductible:

• Gym or fitness center fees
• Movie rental fees
• Game rental fees

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Where to claim travel expenses when filing your taxes

If you are self-employed, you will claim all your income tax deduction on the Schedule C. This is part of the Form 1040 that self-employed people complete ever year.

What happens if your business deductions are disallowed?

If the IRS challenges your business deduction and they are disallowed, there are potential penalties. This can happen if:

• The deduction was not legitimate and shouldn't have been claimed in the first place, or
• The deduction was legitimate, but you don't have the documentation to support it

When does the penalty come into play?

The 20% penalty is not automatic. It only applies if it allowed you to pay substantially less taxes than you normally would. In most cases, the IRS considers “substantially less” to mean you paid at least 10% less.

In practice, you would only reach this 10% threshold if the IRS disqualified a significant number of your travel deductions.

How much is the penalty?

The penalty is normally 20% of the difference between what you should have paid and what you actually paid. You also have to make up the original difference.

In total, this means you will be paying 120% of your original tax obligation: your original obligation, plus 20% penalty.

Justin W. Jones, EA, JD

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Everything You Need to Know About Claiming a Mileage Tax Deduction

Text Callout : Key Takeaways - Everything You Need to Know About Claiming a Mileage Tax Deduction

Claiming a tax deduction for mileage can be a good way to reduce how much you owe Uncle Sam, but not everyone is eligible to write off their driving costs.

In the past, taxpayers had more options to deduct mileage and could claim unreimbursed travel while on the job.

“That’s not deductible anymore,” says Michelle Brown, managing director in the Kansas City, Missouri, office of accounting firm CBIZ.

The Tax Cuts and Jobs Act of 2017 eliminated itemized deductions for unreimbursed mileage and also significantly narrowed the mileage tax deduction for moving expenses. The latter can now only be claimed by active-duty military members who are relocating because of new orders.

Still, a mileage deduction exists for the following situations:

• Business mileage for the self-employed.
• Mileage related to medical appointments.
• Mileage incurred while volunteering for a nonprofit.

You need to know the rules for claiming mileage on your taxes and, more importantly, you need to keep careful records. Here's a breakdown of everything you need to know about how to claim mileage on your taxes.

Current Tax Deductible Mileage Rates

How much you can deduct for mileage depends on the type of driving you did. Business mileage is most common, but you can also deduct mileage accrued for charitable purposes or for receiving medical care.

“Those are itemized deductions,” says Nicole Davis, a CPA and member of the FreshBooks Accounting Partner Program. “That mileage rate is a lot lower than the business mileage rate.”

For the 2023 tax year, the IRS approved the following standard mileage rates:

• Self-employed/Business:  65.5 cents per mile.
• Charity:  14 cents per mile.
• Medical and Moving:  22 cents per mile.

For the 2024 tax year, standard mileage rates are:

• Self-employed/Business:  67 cents per mile.
• Medical and Moving:  21 cents per mile.

Mileage rates for business, medical care and moving are typically adjusted once at the start of each year. However, on rare occasions, the IRS might adjust rates mid-year to account for inflation or other economic factors. This most recently happened in 2022 and 2011.

However, the standard mileage rate for charity is set by statute so the IRS can't adjust it.

Self-Employed Workers: What Mileage Is Deductible

When it comes to mileage tax deductions, the self-employed mileage deduction is the largest one available. It can be valuable to anyone with their own business, but especially for those working in the gig economy as delivery drivers, says Duke Alexander Moore, an enrolled agent and the CEO and founder of Duke Tax in Dallas, Texas, which specializes in tax services for content creators and entrepreneurs.

You can also rack up deductible business miles from meeting with clients, traveling to secondary work sites or running errands to pick up supplies. If a person drives for both business and personal purposes, only the miles related to the business are deductible. Business miles are considered only those driven from a person's principal place of business.

“We never want to confuse a commute as business travel,” Moore says.

Driving from home to a principal place of business is considered a commute, even for those who are self-employed or small business owners. Only those who have a home office as their principal place of business can deduct mileage when driving to and from home for business-related purposes.

How to Claim Mileage on Taxes

Self-employed workers can claim their mileage deduction on their Schedule C form, rather than the Schedule A form for itemized deductions. Mileage for self-employed workers isn't subject to any threshold requirements. In other words, all miles are deductible regardless of how much a person drives for work.

Is mileage considered an office expense? No, it doesn’t get lumped in with office expenses on a Schedule C. Instead, mileage can be claimed on line 9 for car and truck expenses.

Alternatively, people can claim their actual vehicle expenses for maintenance, repairs and fuel. Workers who use a vehicle for personal travel as well can deduct only a prorated percentage of expenses based on business use.

Taxpayers may want to calculate which option will result in the higher deduction, but for most, deducting mileage is easier and will result in greater tax savings.

“The standard mileage deduction is the gift that keeps giving,” Davis says.

Regardless of which method you use – standard mileage rates or actual expenses – plan to stick with it for the duration of the time you own a vehicle. Switching from mileage to actual costs could be difficult since you may need to factor in calculations for depreciation.

The IRS states that taxpayers who want to use standard mileage for their deductions must do so in the first year the vehicle is available for business use. Meanwhile, those who operate a fleet of vehicles – five or more – can deduct only actual expenses.

Itemize Your Deductions to Claim Medical and Charitable Mileage

Self-employed people aren't the only ones who can take advantage of mileage tax deductions, but everyone else will need to file a Schedule A form and itemize their deductions if they want to get in on the tax savings. Those who itemize may be able to deduct mileage for medical care and charity work.

But be aware that these deductions are not nearly as lucrative as those for self-employed workers. That’s because the reimbursement rates for medical and charitable mileage are considerably lower than what's offered for business travel. What’s more, there are thresholds and other limits on these deductions.

“Typically, you won’t see most people taking advantage of these,” Moore says.

Mileage accrued when driving to and from doctor visits, the pharmacy and the hospital can all count toward a medical deduction . But there's a catch: Only medical expenses – both mileage and other bills combined – in excess of 7.5% of your adjusted gross income can be deducted.

While it can be difficult to exceed the income threshold, if you had significant medical bills last year, it can be worthwhile to add up your annual mileage for doctor visits to boost your deduction amount.

If you drive to volunteer at your favorite nonprofit, that mileage is deductible as part of your charitable donations. The IRS allows volunteers to claim 14 cents per mile, but you have to be doing the volunteering yourself. You can't, for example, be driving a child to a volunteer activity. There is no threshold requirement for claiming these miles.

“In order to take advantage (of these deductions), you need to be itemizing,” Brown says.

With the standard deduction for married couples filing jointly set at $27,700 in 2023, Brown says few people are able to claim charity and medical mileage deductions because they get a greater benefit from taking the standard deduction than they do from itemizing.

The IRS Will Want to See Your Records

While deducting mileage can save tax dollars, think twice before claiming travel time you can't document. If you're audited , the IRS will want to see a log that includes dates, destinations and the reasons for travel. These travel logs should record exact mileage amounts.

“It’s something called substantiation,” Moore says. What’s more, the log is supposed to be updated throughout the year as a person drives.

“It could be handwritten; it could be an Excel spreadsheet; it could be an app,” Brown says.

MileIQ, TripLog and Everlance are a few of the apps available that automatically detect travel and log every trip. Users can then categorize their drives by purpose and run reports to document deductions. If you didn't track your travel in real time, Davis suggests looking back at your calendar to create a log before you claiming the deduction on your tax return.

During an audit, taxpayers will need to provide evidence of when they traveled and why. You may be able to piece that together based on bank records of purchases, calendar events and even your phone’s GPS tools.

Still, there is no guarantee the IRS will accept documentation compiled after the fact. It's better to keep a log right from the start rather than risk a deduction being disallowed during an audit.

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Commuting Mileage: What You Need to Know About Commute Rules

While commuting to and from work technically is a work-related activity, it doesn’t qualify for tax-free reimbursements the way business mileage does. That’s because the IRS considers travel between someone’s primary place of work and home to be a personal expense. 

As an employer, you need to make sure you’re not reimbursing commutes because it could make you non-compliant with tax rules.  As a driver, you should be able to distinguish commuting miles from business miles for the same reason. Getting reimbursed for a commute would mean that you’d get income that should’ve been taxed — and that would make your tax return incorrect and could land you with an audit.

This article unpacks the IRS's stance on commuting miles and explains how to keep track of mileage correctly to avoid over-reimbursing.

What is commute mileage?

A commute refers to regular trips between your home and your primary place of work, which can be an office, factory, shopping mall, or any other location in which you regularly work. Any commuting mileage driven by a self-employed person or an employee doesn’t qualify for a tax deduction or tax-free mileage reimbursement. 

Interestingly, any drive that begins or ends at home, like a drive from your home to a client’s office in the morning may also be considred a commute in the eyes of the IRS. 

The distinction between business mileage and commute mileage is crucial for businesses and their drivers because business mileage is deductible and can be reimbursed tax-free at standard rates, but commute mileage cannot.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

Some exceptions

If a person works primarily from home — a trend that has become increasingly popular — home becomes that person’s primary workplace, so any work-related trip (like visiting the company’s headquarters) can’t be qualified as commuting. This means it can count as business mileage, and can be reimbursed.

What employers need to know about commute mileage

If your company reimburses employees for business mileage, commutes need to be excluded from your reimbursement amounts. 

Business mileage, like client meetings, vendor visits, and travel to conferences, is considered a business expense. That means employees can be reimbursed tax-free for these expenses at the standard rates set by the IRS each year. 

Commutes count as personal expenses and cannot be reimbursed tax-free. You can still reimburse employees for commute expenses (like paying for parking fees or transit passes) but these reimbursements need to be taxed like regular income.

What drivers need to know about commute mileage

Commutes are personal expenses and you can’t be reimbursed for them tax-free. That means if your employer accidentally reimburses your commute mileage as part of your regular business mileage, you’ll end up with under-reported income.

Your tax return may end up being incorrect, which could lead to penalties. That’s why tracking mileage and labelling trips accurately is as important for drivers as it is for managers.

How to Make Sure You’re Not Reimbursing Commutes

Every business that hires drivers needs a clear commute mileage policy. It’s the only way to both stay compliant and keep things fair for drivers and employers alike. What kind of commute mileage policy your business adopts depends on your needs. Smaller organizations may ask drivers to deduct their commute distances in their mileage logbook. 

Other organizations may prefer setting a single commute distance for their entire team, especially if they have a lot of drivers who all have different commute lengths. For example, a company can set their commute distance at 5 miles. That means all drivers get 5 miles deducted from their daily work mileage. This saves time because an admin wouldn’t have to calculate a new commute distance for every driver.

What’s the best way to track commutes?

If you have a small team, calculating commutes by hand or in a spreadsheet is an option. But you run the risk of errors, and it can take time and some mental energy to figure out each employee’s commute. 

Mileage tracking apps also often come with tools that help you track employee commutes. Commute Mileage, MileIQ’s commute tool, lets you set a commute distance for your whole team, and then automatically deducts it from employee’s drives labeled as  “Business + Commute.” Because commutes are deducted for you every time, this method generally saves a lot of effort and is likely more accurate.

But no matter which method you decide on, automating the process, whether with an app or an Excel sheet formula can help you avoid over-reimbursing and help your employees stay compliant.

Remember: Every Mile Counts!

Knowing you need to track commute mileage solves only a part of the problem..The real challenge is remembering to track it every single time. Even the shortest trips can add up to considerable mileage. Tracking all mileage, including commute miles, with an app like MileIQ means you never have to decipher a mileage log to decide which miles count.

*Note: The materials on this website have been prepared by MileIQ for informational purposes only and are not legal advice.

Still tracking miles by hand?

Check out more mileage guides.

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IRS issues standard mileage rates for 2022

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IR-2021-251, December 17, 2021

WASHINGTON — The Internal Revenue Service today issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021,
• 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces .

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Notice 22-03 PDF , contains the optional 2022 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2022 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

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