Key Takeaways
Eligibility varies by purpose and taxpayer type. Self-employed individuals, volunteers, certain military members, and those claiming medical-related travel may qualify, but employees generally cannot deduct mileage under current tax law.
Accurate recordkeeping is essential. Without a complete mileage log, the IRS can deny your deduction during an audit.
Standard mileage rates depend on the type of travel. Business, medical, volunteer, and military-related miles have different per-mile rates, and self-employed taxpayers can choose between standard mileage and actual expenses (with restrictions).
Who Qualifies For the Mileage Tax Deduction
Before the Tax Cuts and Jobs Act of 2017, more taxpayers could take advantage of the mileage tax deduction. Now, the deduction mainly applies to the following:
- Self-employed individuals and small business owners. Any business-related mileage can be reported on Schedule C (Form 1040). See additional requirements below.
- Armed Forces Reservists (through 2025). Any unreimbursed mileage expenses can be reported on Form 2106. This also applies to certain qualified performing artists, fee-based government officials (local & state), as well as employees with impairment-related work expenses.
- Active-duty military. Members of the Armed Forces who are required to relocate due to a permanent change of duty station can deduct moving-related mileage on Form 3903, Moving Expenses.
- Individuals Needing Medical Care. If itemizing, mileage can be claimed as a medical expense on Schedule A (Form 1040). This includes not only trips to the doctor, but also emergency visits and trips to the pharmacy.
- Volunteers. Those donating their time to qualified nonprofits can deduct the mileage going to and from volunteer activities if itemizing (Schedule A).
Self-employed individuals can choose between the standard mileage rate or deducting actual costs (gas, insurance, repairs, depreciation, etc.). Most others must use the standard mileage rate for their qualifying expenses. Additionally, you must own or lease the vehicle to claim the deduction.
Additional Requirements For Business Owners
If you plan to use the standard mileage rate for any vehicle you use for business purposes, there are additional requirements that must be met. In addition to owning or leasing the vehicle, you must NOT:
- Operate five or more vehicles at the same time (fleet operation),
- Claim a depreciation deduction for the vehicle using any method other than straight-line,
- Claim a Section 179 deduction on the vehicle,
- Claim the special depreciation allowance on the vehicle, and
- Claim actual expenses after 1997 for a car you lease.
You must also use the standard mileage rate in the first year the vehicle is in business use. In subsequent years, you can choose either actual expenses or the standard mileage rate. If you lease your vehicle, you can only choose the standard mileage rate.
2025 Mileage Rates
For tax year 2025, the standard mileage rates are as follows:
- Self-employed and business – $.70 per mile
- Charities/volunteers – $.14 per mile
- Medical – $.21 per mile
- Military (moving) – $.21 per mile
Although the 2026 rates haven’t been released yet, we expect the charity rate to remain the same. It hasn’t changed in the past 14 years. We are likely to see a small uptick for the other two rates.
Recordkeeping Tips
When it comes to claiming the mileage tax deduction, recordkeeping is a critical component. The IRS has strict requirements, and without proper documentation, your deduction can be disallowed if audited. This could lead to additional taxes, penalties, and interest fees.
To ensure your deduction meets IRS standards, keep a travel log that details:
- Date of travel
- Mileage covered
- Destination or the location of travel
- Purpose of the trip (client meeting, supply run, etc.)
- Odometer reading at the beginning and end of the tax year
Although the IRS accepts hardcopy documentation (paper), it’s best to use a digital copy when tracking business mileage. Mileage tracking apps utilize GPS to calculate the distance driven, thereby reducing errors that can occur when manually calculating these numbers. Digital records are also securely stored in the cloud, protecting them from fire, flood, and theft.
Mileage Tax Deduction FAQs
Final Thoughts
The mileage tax deduction can be a powerful way to reduce your taxable income, whether you’re self-employed, performing volunteer work, managing medical needs, or relocating for military service. The key is understanding which rules apply to your situation and maintaining thorough, accurate records to back up your claims. By choosing the right deduction method and tracking your mileage properly, you can make the most of this valuable tax break while staying fully compliant with IRS requirements.