Mileage Deduction Calculator
Calculate your IRS mileage deduction for business driving.
Enter business miles driven to get your tax deduction amount for the current year.
How Mileage Tax Deductions Are Calculated
The IRS allows taxpayers to deduct vehicle use for business, medical, moving (military only), and charitable purposes. The simplest method uses the standard mileage rate.
Deduction Formula:
Deduction = Miles Driven × IRS Standard Rate
2024–2025 IRS Standard Mileage Rates:
- Business use: 67 cents per mile (2024) / 70 cents per mile (2025)
- Medical/moving: 21 cents per mile
- Charitable: 14 cents per mile (set by Congress, rarely changes)
Worked Example: A freelance consultant drives 8,400 miles for client visits in 2025:
- Deduction = 8,400 × $0.70 = $5,880
If they’re in the 22% tax bracket, this saves: $5,880 × 22% = $1,293.60 in actual taxes
Actual Expense Method (Alternative):
Instead of the standard rate, you can deduct the actual percentage of vehicle costs used for business:
Deduction = (Business Miles / Total Miles) × Total Vehicle Costs
Total costs include gas, insurance, repairs, depreciation, registration.
Record-Keeping Requirements:
- Date, destination, business purpose, and miles for every trip
- A mileage log app (MileIQ, Everlance) makes this automatic
- Keep records for at least 3 years (IRS audit window)
- Cannot use standard rate if you’ve claimed MACRS depreciation on the vehicle