Claiming a mileage tax deduction can save you money. Learn what qualifies, the latest IRS rates, and how to calculate it simply.
What is the IRS Mileage Tax Deduction?
The mileage tax deduction helps people lower their taxes. It lets you write off the costs of using your car for work, medical visits, moving, or helping a charity. Instead of adding up every cost like gas and fixes, the IRS gives you a simple rate for each mile you drive for a specific reason. Self-employed people, like freelancers and small business owners, use this a lot.
2025 IRS Standard Mileage Rates
For 2025, the IRS has set new rates. Here’s a simple breakdown:
| Reason for Driving | Rate Per Mile (2025) |
|---|---|
| Business (self-employed and businesses using their vehicle) | $0.70 |
| Charity (volunteering) | $0.14 |
| Medical or Moving (for military members only) | $0.21 |
These rates went up from last year. The business rate got a 3-cent bump to 70 cents a mile in 2025.
Who Can Claim Mileage Tax Deductions?
Not everyone can claim the mileage tax deduction. But if you fit these groups, this deduction might be for you:
- Self-Employed: If you run your own business, drive for services like Uber or Lyft, or deliver goods, you can deduct miles driven for your work. This includes going to see clients, driving between job sites, or running business errands.
- Active-Duty Military: Only active-duty military members can deduct miles if they move because of a new assignment.
- Volunteers: If you drive for a qualified charity, you can deduct those miles.
It’s important to know that most regular employees (W-2 workers) cannot deduct job-related mileage anymore. This rule changed years ago and is in place at least through 2025. Also, you cannot deduct the miles you drive from your home to your regular workplace. This is seen as a personal trip, like your daily commute.
