IRS Mileage Rate for Texas in 2025: What Drivers Need to Know

Last updated: September 24, 2025

Whether you’re traveling between clients in Dallas, making jobsite visits in the Permian Basin, or serving rural patients near Lubbock, tracking your mileage accurately in Texas could save you hundreds—or even thousands—of dollars in deductions or reimbursements.

In this article, we’ll explain what the IRS mileage rates are for Texas in 2025, how to stay compliant, and why MileageWise is crucial to maximize mileage deduction for Texans.

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Table of Contents

Summary

  • IRS mileage rates in Texas for 2025: Business: $0.70 per mile, Medical/Moving: $0.21 per mile, Charitable: $0.14 per mile.
  • Explore real-world mileage estimates for popular Texas routes, like Houston–San Antonio and Dallas–Fort Worth.
  • Read a real Texas case study and see how technology helped save thousands in deductions.
  • Discover which industries benefit most from mileage reimbursements and how to make your logs audit-ready with MileageWise’s Google Maps Timeline Import.

Daily Business Mileage Deduction Examples in Texas

New Braunfels → Austin (49 mi)
Austin → San Antonio (80 mi)
San Antonio → New Braunfels (32 mi)

Total: 161 miles

Deduction: 161 × $0.70 = $112.70

Katy → Houston (30 mi)
Houston → Sugar Land (22 mi)
Sugar Land → Katy (27 mi)

Total: 79 miles

Deduction: 79 × $0.70 = $55.30

Texas Reimbursement Laws & Employer Policies

Texas doesn’t have a specific reimbursement statute, but under the Texas Payday Law (§61.018), employers cannot unlawfully deduct business expenses from employees’ wages.

Best practice is for employers to use the IRS 2025 mileage rate of $0.70 per mile or a custom rate backed by data. Toll roads, such as SH 130 or Beltway 8, should be reimbursed separately and noted on the employee’s expense report.

This page is for informational purposes only. Please consult your advisor for guidance on your specific situation.
For more details, visit our IRS Mileage Rates Hub for nationwide information.

2025 IRS Mileage Rate

  • Business Mileage Rate: Standard mileage rate for driving related to business activities: $0.70/mi 
  • Medical / Moving Mileage Rate: Relocation and medical travel for active-duty military members: $0.21/mi 
  • Charitable Mileage Rate: Travel for charitable organization service purposes: $0.14/mi 

These mileage rates represent the IRS’s estimate of the cost to operate a vehicle, including depreciation, maintenance, gas, insurance, and wear-and-tear. Most employers use the business rate for reimbursement, and self-employed individuals can claim that amount per qualified mile when filing taxes.

Real Texas Routes & Mileage Value

Route (one-way)Approx. miles2025 value
Dallas → Fort Worth32 mi$22.40 (RT $44.80)
Houston → San Antonio197 mi$137.90 (RT $275.80)
Austin → Waco102 mi$71.40 (RT $142.80)
Midland → Odessa20 mi$14.00 (RT $28.00)
Lubbock → Amarillo124 mi$86.80 (RT $173.60)
El Paso → Marfa194 mi$135.80 (RT $271.60)
Tyler → Shreveport99 mi$69.30 (RT $138.60)
Abilene → Wichita Falls142 mi$99.40 (RT $198.80)
Galveston → Beaumont124 mi$86.80 (RT $173.60)
Killeen → College Station112 mi$78.40 (RT $156.80)

Calculations use the 2025 business mileage rate of $0.70/mi.

Regional Driving Realities in Texas

  • Urban metroplexes (like Dallas/Fort Worth & Houston): Stop-and-go traffic, parking difficulties, and congestion.
  • West Texas oilfields & farmlands: Routes often cover long, unmarked roads.
  • Suburban & rural healthcare: Workers can drive hundreds of miles a week without realizing it.

Who Benefits Most from Mileage Reimbursement in Texas

  • Oil & Gas field techs and service providers
  • Real estate agents and appraisers
  • Home healthcare workers and visiting nurses
  • Field sales reps (medical, tech, services)
  • Construction and contractors
  • Rideshare & delivery drivers 
  • Agricultural consultants and inspectors
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MileageWise: Three Solutions for Every Texas Driver

In Texas, where driving between sprawling cities like Houston, El Paso, and Dallas can mean hours on the road, keeping an accurate mileage log is challenging. With the state’s vast landscapes and long commutes, keeping an accurate record of every trip is essential for making the most of your deductions.

MileageWise is a Texas-friendly mileage log solution to help you keep track of your mileage and maximize your deductions. Depending on your situation, MileageWise offers three distinct tools to ensure you meet IRS requirements and never miss a deduction:

1. Transform your Google Maps Timeline into an Audit-proof Mileage Log

Did you realize you forgot to track your mileage? Or do you need your past mileage records? MileageWise can transform Google Maps Timeline data to create a fully IRS-compliant mileage log. The Google Maps Timeline Import feature automatically organizes your trips, so your records are audit-proof.

2. No Timeline? No Problem.

If you didn’t track a drive or your Timeline is missing, no problem! MileageWise’s AI Wizard reconstructs past trips using your driving patterns. This is the perfect solution for when you’re missing logs from the previous month or even year.

3. Mileage tracker App for Long-Term Peace of Mind

Use MileageWise’s ad-free mileage tracker app to track all future trips in real time. You can easily export files based on IRS documentation needs. No more manual entry, just clean logs ready for Tax Day.

Quick Story: How a Permian Basin Contractor Saved $2,000

Caleb, a pipeline inspector from Odessa, lost four weeks of mileage records during a busy spring rush. He thought his mileage for that month was gone for good. However, using MileageWise’s Google Maps Timeline Import feature, he recovered local trips from downtown to work yards.

With MileageWise, Caleb created a complete, clean, audit-proof log — and saved over $2,000 in deductions that would have otherwise been lost.

Conclusion

Mileage tracking in Texas isn’t just a necessary chore. It’s essential if you want to fully benefit from mileage tax deductions or receive complete employer reimbursement. With industries that involve high mileage and long workdays, failing to maintain accurate records could cost you thousands.

MileageWise helps you stay compliant whether you drive on I-35, SH-130, or a dirt road in West Texas. No matter your situation, there are three powerful solutions to keep you covered:

  • Transform your Google Maps Timeline data into an audit-ready mileage log.
  • If you do not have Timeline, the AI Wizard Mileage Log Generator reconstructs your past routes based on your driving habits and personal preferences.
  • The MileageWise Mileage Tracker App automatically logs every mile driven, ensuring nothing slips through the cracks.

MileageWise solutions provide answers for every situation. No matter which one you choose, you can be confident that you’ll stay compliant with IRS regulations and maximize your deductions.

Ready to turn your Texas miles into real money? Try MileageWise today and create a compliant, audit-ready mileage log in minutes.

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FAQ

The standard IRS business rate is $0.70 per mile, medical and moving (military) is $0.21/mi, and charitable is $0.14/mi.

Not explicitly, but under the Texas Payday Law, employers cannot force employees to eat business expenses.

These are separate from the mileage rate — record and claim them individually if allowed by your employer or when filing taxes.

No. Only miles driven after work begins (such as travel to clients or job sites) are deductible.

Yes — the rate is per mile, regardless of fuel type. EV drivers can still claim $0.70/mi for business purposes.

Automatic logging tools like MileageWise reduce errors, fill gaps, and ensure logs are audit-proof — especially useful for long-haul drivers or those making multiple stops daily.

Related IRS Mileage Rate Guides