Mileage Deduction Calculator
Calculate your 2025 IRS mileage deduction at $0.70/mile. Enter business miles, see your deduction and estimated tax savings instantly. 2024 rate ($0.67) also supported.
Miles driven for business (client visits, deliveries, etc.)
Total miles on the vehicle for the year (business + personal)
IRS rate: $0.70/mile
For the tax-savings estimate. Default 22% = US median bracket.
Gas + insurance + repairs + depreciation. Fill in to compare against the standard method.
Your mileage deduction
Standard mileage deduction
$5,600
8,000 miles × $0.70· saves ~$1,232 in tax
Business-use percentage
53.3%
8,000 of 15,000 mi
Rate per mile
$0.70
IRS standard rate, 2025
Tax saved
$1,232
At your 22% marginal rate
Keep a mileage log. The IRS expects a contemporaneous record of business trips: date, destination, business purpose, and miles. A spreadsheet or app like MileIQ is fine — the number above is only the deduction, not proof of it.
Standard or actual? This calculator uses the IRS standard mileage method. The alternative — actual expenses (gas, insurance, depreciation, repairs × business-use %) — sometimes yields a bigger deduction for expensive vehicles but requires careful record- keeping. If you used the standard method in year one, you can switch back and forth in later years; if you used actual first, you're locked in (depreciation rules).
EVs are eligible too. The IRS standard mileage rate applies regardless of fuel type — gas, diesel, hybrid, or electric. The rate already bundles the average per-mile operating cost across all vehicle types. EV drivers don't need a separate calculation.
How to use this calculator
- Enter business miles — total miles driven for business purposes during the year.
- Enter total miles driven — the year’s full odometer change (business + personal). Used to show your business-use percentage.
- Pick the tax year — drives the IRS rate ($0.70/mi in 2025, $0.67/mi in 2024).
- Pick your marginal tax rate — for the tax-savings estimate (the deduction itself doesn’t change).
The result shows your deduction, business-use percentage, and estimated tax saved.
How it works
The standard mileage method is simple arithmetic:
Deduction = business miles × IRS rate per mile
For 8,000 business miles in 2025: 8,000 × $0.70 = $5,600 deduction.
The deduction reduces your taxable income; the dollar tax savings depend on your marginal rate. At 22% federal + 5% state = 27% combined, a $5,600 deduction saves about $1,512 in tax.
What the standard rate covers
The IRS rate is designed to bundle all costs of operating a vehicle:
- Gasoline
- Oil changes and routine maintenance
- Repairs
- Tires
- Insurance
- Registration fees
- Depreciation (built into the rate)
You can’t double-deduct any of those if you use the standard mileage method. Parking fees and tolls for business trips are deductible separately, in addition to the standard rate.
Standard vs actual
The actual-expense method requires tracking every vehicle cost (gas receipts, insurance bills, repair invoices, depreciation schedule) and multiplying the annual total by your business-use percentage. It can win for expensive vehicles or low-mileage drivers (high fixed costs spread over few miles), but the IRS audit risk and paperwork burden are real. Most freelancers stick with standard.
Frequently Asked Questions
What is the 2025 IRS mileage rate? ▾
The IRS standard business mileage rate for 2025 is $0.70 per mile, up from $0.67 in 2024. The rate is published annually each autumn for the following year (typically in Notice 20XX-XX) and is meant to cover the average cost of operating a vehicle — gas, insurance, depreciation, maintenance, registration. It's adjusted for fuel-price trends but not for the actual cost in your location.
Standard mileage or actual expenses — which is better? ▾
Standard mileage is simpler and works for about 95% of freelancers. Actual expenses (gas + insurance + depreciation + repairs × business-use %) requires meticulous record-keeping but sometimes wins for expensive vehicles or high-cost-of-driving regions. Important: if you use the standard method in your first year of business, you can switch between methods in later years. If you start with actual, you're locked into actual for that vehicle (because of depreciation rules).
What counts as a business mile? ▾
Driving from your home or office to a client site, between business locations, to a temporary work site, to a business meal or meeting. NOT commuting from home to your regular office — that's personal mileage and not deductible. Driving to a post office to mail business paperwork is deductible; driving to the post office to send a personal package is not. Mixed-purpose trips are tricky — the IRS generally wants you to allocate based on the primary purpose.
How do I keep a mileage log? ▾
The IRS expects a contemporaneous record — meaning you log trips as they happen, not reconstructed from memory at tax time. The log should include date, destination, business purpose, and miles driven (start and end odometer reading, or just the trip total). A spreadsheet works fine; apps like MileIQ, TripLog, and Stride automate the tracking via GPS. The simpler the system, the more likely you'll actually use it.
Can W-2 employees claim a mileage deduction? ▾
Not since 2017. The Tax Cuts and Jobs Act eliminated unreimbursed employee business expenses (including mileage) through 2025 for W-2 workers. If your employer reimburses your mileage at the IRS rate, that reimbursement is tax-free — but you can't deduct the miles separately. Only self-employed workers and independent contractors (1099) qualify for the deduction.
Do I need separate vehicles for business and personal? ▾
No — most freelancers use one vehicle for both. The business-use percentage is calculated from your mileage log. If you drove 8,000 business miles out of 15,000 total miles, your business-use percentage is 53%. The IRS doesn't require a dedicated business car. Some freelancers find a dedicated vehicle simplifies record-keeping, but it's not a requirement.