Mileage Deduction Calculator
Calculate your business mileage tax deduction using the IRS standard mileage rate. Free calculator for freelancers, contractors, and small business owners.
Calculator
Mileage Details
Miles driven for business purposes only
2024 standard rate: $0.67/mile
Combined federal + state rate
Your Mileage Deduction
Monthly Breakdown (Average)
Important: Keep detailed mileage logs including date, destination, business purpose, and miles driven. The IRS requires documentation to claim mileage deductions.
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Understanding Business Mileage Deductions
If you use your personal vehicle for business, you can deduct those miles on your taxes. This deduction can significantly reduce your tax liability—especially for freelancers and small business owners who drive frequently for work.
IRS Standard Mileage Rates (2024)
What Qualifies as Business Mileage
- Client meetings and site visits
- Business errands (supplies, post office)
- Networking events and conferences
- Bank and accountant visits
- Travel between job sites
- Airport trips for business travel
- Commuting to regular workplace
- Personal errands during work hours
- Driving for personal reasons
- First/last trip from home (usually)
- Lunch or personal stops
Standard Mileage vs. Actual Expenses
- Simple: just track miles driven
- IRS rate covers all vehicle costs
- Best for average vehicles with moderate use
- Can switch to actual expenses later (first year)
- Track all vehicle expenses (gas, repairs, insurance, depreciation)
- Deduct business percentage of total expenses
- May be better for expensive vehicles or heavy repairs
- More complex record-keeping required
Required Record Keeping
The IRS requires "adequate records" for mileage deductions. Your log should include:
- Date of each business trip
- Destination (where you went)
- Business purpose (why you went)
- Miles driven (odometer or GPS)
- Starting/ending odometer (for the year)
Mileage Tracking Methods
- Mileage tracking apps - Automatic GPS tracking (MileIQ, Everlance)
- Spreadsheet - Manual entry with date, miles, purpose
- Paper logbook - Traditional method, keep in your car
- Calendar notes - Add mileage to meeting entries
IRS Tip: Log your mileage as you drive, not at the end of the year. "Reconstructed" logs from memory or calendar entries are less reliable in an audit than contemporaneous records.
Frequently Asked Questions
What is the current IRS mileage rate?
For 2024, the IRS standard mileage rate is 67 cents ($0.67) per mile for business use. This rate is updated annually and covers gas, insurance, depreciation, maintenance, and other vehicle expenses.
What counts as business mileage?
Business mileage includes driving to client meetings, project sites, networking events, business supply purchases, and traveling between work locations. Commuting from home to your regular office does not count (unless your home is your office).
Can I deduct mileage if I'm an employee?
Generally no—the Tax Cuts and Jobs Act suspended unreimbursed employee expense deductions through 2025. Self-employed individuals, independent contractors, and business owners can still claim mileage deductions.
Standard mileage rate vs. actual expenses—which is better?
Standard rate is simpler and works for most people. Actual expenses (gas, repairs, insurance, depreciation) may be better if you have a high-cost vehicle or expensive repairs. Once you choose actual expenses for a vehicle, you can't switch back.
What records do I need to keep?
Keep a mileage log with date, destination, business purpose, and miles driven for each trip. The IRS requires contemporaneous records—meaning you should log trips as they happen, not reconstruct them later.
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