Business mileage deductions can significantly reduce your tax liability when driving for business, medical, moving, or charitable purposes. Here are the current rates and requirements for claiming these deductions.

2025 Standard Mileage Rates (for taxes filed in 2026):

• Business: 70 cents per mile
• Charity: 14 cents per mile
• Medical or moving: 21 cents per mile

2024 Standard Mileage Rates (for taxes filed in 2025):

• Business: 67 cents per mile
• Charity: 14 cents per mile
• Medical or moving: 21 cents per mile

Calculating Business Mileage Deductions

You can choose between two methods:

1. Standard Mileage Deduction

• Multiply business miles by IRS mileage rate
• Must own or lease the vehicle
• Requires detailed mileage records

2. Actual Expenses Method

• Track and deduct actual vehicle expenses:
  • Depreciation
  • License and registration fees
  • Lease payments
  • Gas and oil
  • Insurance
  • Repairs
  • Tires

Qualifying Activities by Category

Business:

• Client meetings
• Business-related travel
• Temporary workplace visits
• Note: Regular commuting is not deductible

Charitable:

• Volunteer work travel
• Service to charitable organizations
• Includes parking fees and tolls

Medical:

• Doctor and hospital visits
• Transporting others for medical care
• Mental health treatment visits
• Must exceed 7.5% of adjusted gross income

Moving:

• Limited to active-duty military
• Must relate to permanent change of station

Record Keeping Requirements

Maintain detailed records including:

• Date of trip
• Miles driven
• Purpose of travel
• Starting and ending locations

To claim the deduction:

• Business expenses: Report on Schedule C
• Medical/charitable/moving: Must itemize deductions on Schedule A
• Keep all supporting documentation for at least three years

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