How Many Miles Can You Deduct On Your Taxes? + FAQs

You can deduct every business mile you drive on your taxes – there’s no hard cap.

The IRS allows a fixed rate per mile (e.g. $0.655 in 2023 and $0.67 in 2024), so 10,000 miles yields about a $6,700 deduction.

🚗 Standard Mileage Rate – Deduct 67 cents per mile in 2024 for business use (65.5¢ for 2023; 70¢ for 2025). For example, 10,000 business miles can knock $6,700 off your taxable income.
💰 No Mileage Limit – There’s no maximum on miles: you can claim every legitimate business mile, whether it’s 100 or 100,000, as long as you follow IRS rules and keep good records.
🔄 Two Deduction Methods – You can deduct vehicle costs via the easy standard mileage method or the detailed actual expenses method each year (if you used the standard rate from the start for that vehicle).
🚫 W-2 Employees – Most employees cannot deduct work-related mileage on federal taxes from 2018 through 2025 (thanks to tax law changes) – only certain groups (e.g. reservists) or specific states allow it.
📝 Recordkeeping is Key – Keep a detailed mileage log and save receipts. The IRS (and tax courts) routinely deny mileage deductions for lack of documentation, so solid records protect your write-off.

In this guide: We’ll explain what counts as deductible mileage, who can claim it, how to choose between the standard mileage rate vs. actual car expenses, examples of how much you can save, plus mistakes to avoid, a state-by-state look at mileage deduction rules, and answers to frequently asked questions.

Mileage Tax Deduction 101: The Basics

The mileage tax deduction lets you write off the costs of using your vehicle for business, charitable, medical, or moving purposes. Instead of deducting every gallon of gas or maintenance bill, the IRS often allows a per-mile deduction rate to simplify things. Every year, the IRS sets a standard cents-per-mile rate for different purposes (business, medical/moving, charity). When you use that rate, you simply multiply the miles driven for that purpose by the rate to calculate your deduction.

To claim a mileage deduction, the miles must be for a qualifying purpose:

Business miles – Driving you do for work or your business (e.g. traveling to meet clients, going between job sites, running errands for your business). If you’re self-employed or a gig worker, these miles are generally deductible. For employees, these were deductible pre-2018, but the rules changed (more on that later).

Charitable service miles – If you drive while doing volunteer work for a registered charity (e.g. delivering meals for a nonprofit), you can deduct those miles as a charitable contribution. The rate is lower (14¢ per mile, fixed by law).

Medical miles – Miles driven for doctor visits or other medical purposes (for yourself or dependents) can be counted as a medical expense if you itemize. The rate is typically around 16–22¢ per mile (it was 22¢ in 2023, dropped to 21¢ in 2024).

Moving miles (military) – If you’re an active-duty military member moving to a new station on orders, you can deduct moving-related mileage at the medical/moving rate (also ~22¢ or 21¢ per mile). Non-military moves no longer qualify for a deduction on federal returns under current law.

Importantly, commuting miles are never deductible. Driving from your home to your regular workplace (and back) is considered personal commuting, not a business expense, even if you discuss work or prepare for the day on your drive. Only miles beyond your normal commute or outside of going to your main job count as business mileage. For example, if you normally drive 10 miles to work, and one day you drive 15 miles to visit a client directly from home, only the extra 5 miles (beyond your ordinary 10-mile commute) might be considered business mileage.

There are two ways to deduct vehicle-related expenses:

Standard Mileage Rate Method – You deduct a set amount per mile driven for a qualified purpose. This method is straightforward: track the business miles and multiply by the IRS rate. It inherently covers fuel, wear-and-tear, maintenance, insurance, and depreciation in that per-mile rate.
Actual Expenses Method – You track and deduct the actual costs of using your car for business (gas, oil, repairs, tires, insurance, registration, plus depreciation or lease payments). If the car is used for both personal and business, you can deduct only the business-use percentage of each expense. For example, if 60% of your miles are business, you can deduct 60% of your total auto expenses.

Both methods require good recordkeeping. With standard mileage, you must track how many miles you drove for each work trip. With actual expenses, you need receipts for all expenses and a log of what percentage of miles were business. The goal is the same: to substantiate the business use of your vehicle.

Who Can Deduct Mileage on Taxes (and Who Can’t)?

Not everyone can take a vehicle mileage deduction on their taxes. It depends on your taxpayer status and how you use the vehicle. Here’s a breakdown:

Self-Employed Individuals & Small Business Owners

If you’re self-employed (sole proprietor, freelancer, independent contractor) or you own a small business, you can fully deduct qualifying business miles. These deductions are taken on your business tax forms (for example, Schedule C for sole proprietors or single-member LLCs). Every mile you drive for business can save you money by reducing your taxable business profit. This includes gig economy workers (Uber/Lyft drivers, delivery drivers, etc.) – if you’re driving for a side hustle or contract work, those miles are business miles.

Small business owners with a separate business entity (like an S-corporation or partnership) can also deduct vehicle expenses, but typically the business must own or reimburse the vehicle use:

If your business owns the car (or it’s under the company’s name), the company can pay all expenses or use the standard mileage rate, and the business claims the deduction on its tax return.
If you’re using your personal car for business errands in a corporation or partnership, the company should reimburse you for the miles (at the IRS rate via an accountable plan) so the company gets a deduction and you don’t have to report the reimbursement as income. If a corporation doesn’t reimburse you, you as an employee cannot deduct those miles on your personal return under current federal rules (because that would be an unreimbursed employee expense).

W-2 Employees (People who get a paycheck from an employer)

For those who are employees (receiving a W-2), work-related mileage is generally NOT deductible on your federal tax return at this time. Prior to 2018, you could deduct unreimbursed employee business expenses (including mileage) if you itemized deductions and the expenses exceeded 2% of your income. However, the Tax Cuts and Jobs Act (TCJA) of 2017 suspended this deduction for tax years 2018 through 2025. That means from 2018 until the end of 2025, a typical W-2 employee cannot write off mileage for commuting or other unreimbursed job travel on their federal taxes.

Example: If you are a salesperson on salary and drive your own car to meet clients but your employer doesn’t reimburse mileage, you unfortunately can’t deduct those miles on your federal return under current law. This has been a surprise to many employees used to the old rules.

There are a few exceptions for employees: The IRS allows certain categories of W-2 employees to still deduct business expenses (including mileage) on their federal return. These are:

Armed Forces reservists (for reserve drills more than 100 miles away, etc.)
Qualified performing artists (actors, musicians meeting specific income criteria)
Fee-basis state or local government officials
Employees with impairment-related work expenses

If you fall into one of those categories, you can use Form 2106 (Employee Business Expenses) to calculate your mileage deduction and then claim it as an adjustment or itemized deduction on Schedule A as allowed.

Also, educators can deduct up to $300 of classroom supplies as an above-the-line deduction, but that’s separate – mentioning it because sometimes teachers ask about mileage for field trips or errands, which unfortunately isn’t covered by that $300 (that is only for supplies/equipment, not travel).

State tax alert: Some states have decoupled from the federal suspension of unreimbursed employee expenses. This means if you’re a W-2 employee in certain states, you may still be able to deduct job-related mileage on your state income tax return even though you can’t on the federal. States like Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, Pennsylvania, and a few others allow some form of deduction for unreimbursed employee expenses (including mileage) on the state return. If you live in one of these states, check your state’s tax rules – you might get a state tax break for those miles even though the IRS gives none right now.

Corporations and Business Fleets

What if you run a larger business or have a fleet of vehicles? Businesses can always deduct vehicle expenses used in the business – it’s just a matter of where:

C-Corporations and S-Corps: The company itself will deduct vehicle expenses (including mileage reimbursements paid to employees). If a corporate employer reimburses you for business travel at the IRS standard rate, you can’t double dip (you don’t deduct anything on your own return, but you also don’t pay tax on the reimbursement – it’s tax-free to you if done under an accountable plan).
If a business uses five or more vehicles simultaneously (fleet), note that the IRS does not allow the standard mileage rate for fleet operations. Those businesses must use the actual expense method for their vehicle deductions.

In summary, self-employed folks and businesses get to deduct mileage, whereas regular employees now generally do not (at least on federal taxes) unless they fit a special category. Always consider where the deduction should be taken – either on a personal return (Schedule C or Form 2106/Schedule A) or on a business return – depending on how the car is used and who owns it.

Business vs. Personal Miles: What Counts as Deductible?

Understanding which miles are deductible is crucial. The IRS cares about the purpose of each trip:

Deductible business miles include trips like visiting clients or customers, traveling from your office to a job site or meeting, running errands for your business (like picking up supplies), going between two different work locations, or traveling from a home office to other work locations. If you work from home (home office as your principal business location) and then drive to a business-related destination, those miles can count as business travel.
Non-deductible personal miles include your daily commute and any personal errands. Commuting is the drive from your home to your main place of work (and back home). No matter if you discuss business on the phone during the drive or carry work materials, those miles are personal according to tax rules. Similarly, a detour to pick up coffee on a work trip is personal for that portion.

Gray areas: What if you have no regular office (your home is your base)? Then trips from your home to see clients or to a temporary work site could be business miles, since your home office is considered your primary work location. Or consider someone with two jobs in different places: driving directly from your first job to your second job – that can be deductible mileage (travel between two workplaces in the same day is generally deductible, even for an employee, though again, employees can’t claim it under current federal law, but it’s still a “work expense”). Always separate out pure commuting (home to main job) which is not deductible.

Tip: Keep a mileage log that notes the date, destination, business purpose, and miles for each trip. For instance, “3/14/2025: Drove 26 miles round-trip to meet Client ABC for project discussion.” This not only helps you calculate the deduction but also serves as proof if the IRS asks.

Now let’s talk about the two methods to calculate your deduction and when each makes sense.

Standard Mileage vs. Actual Expenses: Which Method Should You Choose?

When it comes to deducting car costs for business, you have a choice: the standard mileage rate or the actual expenses method. You can’t use both for the same vehicle in the same year, so you should choose the method that gives you the bigger deduction (and that you’re eligible to use). Here’s how they compare:

Method 1: Standard Mileage Rate (Per-Mile Deduction)

The standard mileage method is straightforward and easy for most people. You simply take the number of qualifying business miles you drove and multiply by the IRS standard rate for that year. This method automatically factors in all the typical costs of operating a vehicle: gas, repairs, maintenance, depreciation, insurance, etc. You don’t need to calculate those separately – it’s all baked into the per-mile amount.

How it works: Suppose in 2024 you drove 8,000 miles for your small business. The IRS business mileage rate for 2024 is 67¢ per mile. Your deduction would be 8,000 × $0.67 = $5,360. You would report that amount as your vehicle expense deduction.

Advantages:

It’s simple. You only have to track miles, not every individual car expense.
Often beneficial if you have a fuel-efficient or older car with low costs, or if you drive a lot of miles. The standard rate might give you a larger write-off than your actual spending (for example, 10,000 miles at 67¢ = $6,700 deduction – you may not have actually spent $6,700 on your car in fuel, depreciation, etc., especially if the car is paid off and reliable).
Recordkeeping is easier – you need a mileage log but you don’t have to keep gas receipts, repair bills for tax purposes (though it’s wise to keep maintenance records for other reasons). Many find it convenient.

Limitations:

You cannot use the standard rate if you used the actual expenses method (with depreciation) on this vehicle in a past year. Also, you must choose the standard method in the first year you put a car into business use, or you’ll lose the option to use it in later years for that car. In other words, if you start off using actual expenses and claim depreciation on a vehicle, the IRS won’t let you switch to standard mileage for that vehicle in a subsequent year.
If you have a fleet of five or more vehicles being used at the same time in your business, the standard rate isn’t allowed – that’s aimed at bigger businesses, which must use actual costs.
The standard mileage rate is set by the IRS annually and may not always cover your full costs if you have an expensive vehicle or very high fuel prices. (For example, in mid-2022 when gas prices spiked, the IRS made a special mid-year increase to the rate from 58.5¢ to 62.5¢ per mile; normally the rate only changes once a year.)

There are also some things the standard mileage rate doesn’t cover that you might be able to deduct separately:

Tolls and parking fees for business trips can be deducted in addition to the per-mile amount. (So if you pay $10 for parking at a client meeting, you can deduct that $10 on top of the mileage.)
Interest on a car loan if you’re self-employed, and property tax on the vehicle, proportionate to business use, can be deducted separately even when using standard mileage (those aren’t included in the per-mile figure). Employees can’t deduct auto loan interest at all, though, since that’s personal interest.

Important: The standard mileage rate includes a depreciation component for your vehicle. For example, out of the 65.5¢ in 2023, a certain portion (around 28¢) was considered to represent depreciation of the car. This matters because if you eventually sell the car, or if you switch from the standard rate to actual expenses, you need to account for that depreciation. (Switching to actual in a later year means you must reduce the car’s remaining tax basis by the amount of depreciation “claimed” via the mileage rate in earlier years, and use straight-line depreciation going forward.)

Leased vehicles: If you lease a car and want to use the standard mileage method, the IRS requires you stick with the standard rate for the entire lease term (you can’t switch to actual expenses in the middle of the lease).

Method 2: Actual Expenses (Deducting Actual Car Costs)

The actual expenses method means you total up all the money you actually spent on your vehicle for the year and then deduct the portion that corresponds to business use. This can potentially give you a bigger deduction if you have a high-cost vehicle or not many business miles.

What to include: Add up costs like:

Fuel (gas or electricity if it’s an EV),
Oil changes, routine maintenance, repairs,
Tires, car washes, registration fees, property taxes on the vehicle,
Auto insurance premiums,
Lease payments (if leasing), or depreciation if you own the car (the purchase price spread over several years),
Any other automotive expenses (new battery, engine overhaul, etc., if relevant).

Then determine your business-use percentage of the car. This is typically: (Business miles driven in the year) ÷ (Total miles driven in the year). So if you drove 12,000 miles total and 6,000 were for business, that’s 50% business use.

You would then multiply each expense by 50% and sum up to get your deduction. For example, say in 2024 you spent $3,000 on gas, $1,000 on maintenance, $1,200 on insurance, and $4,000 depreciation (or lease payments) – total $9,200 in car costs. If 50% was business, your deductible amount would be $4,600.

Advantages:

If you have a costly vehicle or high expenses, this method might yield a larger deduction than the standard rate. For instance, luxury cars or trucks that guzzle gas, or vehicles with big maintenance bills might benefit.
It lets you deduct exactly what you spent for business use. If gas prices or repair costs were extremely high, you’re not limited to the IRS cents-per-mile rate.
You can also deduct business portion of interest on a car loan (for self-employed) and personal property tax on the vehicle here (just like you could on top of standard mileage).

Disadvantages:

Recordkeeping is heavier. You need to save all receipts and paperwork for your car expenses and also track the proportion of business use. It’s more paperwork and calculation.
If your car is efficient or costs are low, the actual expenses might give a smaller deduction than the standard mileage rate would have. For example, maybe you only spent $4,000 all year on a small car used 100% for business – standard mileage might have given you more.
Depreciation limits: If you own the car, the IRS limits how much depreciation you can take each year on passenger vehicles (so-called “luxury auto depreciation limits,” which actually apply to a lot of ordinary cars due to price). This can cap your deduction if you use actual expenses for an expensive vehicle.
Once you choose actual expenses for a vehicle and claim depreciation, you generally cannot switch to standard mileage for that same vehicle in a later year. (You’re essentially locked into actual method going forward, whereas if you start with standard, you had the flexibility to try actual later.)

Switching methods: As noted, to preserve flexibility, many tax advisors suggest using the standard mileage method in the first year a car is placed in service for business. That keeps your options open. You can then calculate both methods each year to see which is better: if actual looks better in a future year, you can switch to actual (you’ll then use straight-line depreciation because you previously used standard). But if you started with actual and took, say, accelerated or Section 179 depreciation, you can’t go to standard later.

One car, one method per year: You choose the method separately for each vehicle. If you have two vehicles you use for business, you could potentially use standard mileage for one and actual for the other in the same tax year, if that suits your situation – as long as each individually qualifies.

Mileage Deduction Examples: How Much Can You Save?

Let’s look at a few common scenarios to see how mileage deductions work in real numbers. These examples assume the IRS business mileage rate for the year and typical situations for different types of taxpayers:

Scenario	Deduction Calculation & Outcome
Self-Employed Freelancer – Jane drives 5,000 miles in 2024 for her graphic design business, using the standard mileage method.	5,000 miles × $0.67 = $3,350 deduction. (This directly reduces her Schedule C income. If she’s in the 24% tax bracket, $3,350 deduction saves her about $804 in federal tax, plus self-employment tax savings.)
Rideshare Driver (Actual vs. Standard) – Mike is an Uber driver who drove 20,000 miles in 2024 for work. His actual car expenses (gas, maintenance, insurance, depreciation) totaled $9,000, and 100% of his driving was business.	Standard method: 20,000 × $0.67 = $13,400. Actual method: actual costs $9,000. Here, the standard mileage rate yields a larger deduction ($13,400 vs $9,000). Mike would choose standard mileage for a bigger write-off.
W-2 Sales Employee – Sarah is a salesperson who drove 1,200 miles in 2024 for her job, but her company reimbursed only tolls and gas, not mileage.	Federal: $0 deduction – unreimbursed employee mileage isn’t deductible federally (2018–2025). State (NY example): Deduction allowed on NY state return. At 1,200 × $0.655 (NY uses federal rate) = ~$786 state deduction.

In the first scenario, Jane’s mileage deduction on her self-employed income will lower both her income tax and self-employment tax. In the second scenario, we see why so many gig drivers use the standard rate: it often gives a higher deduction than their actual out-of-pocket costs, effectively accounting for things like wear-and-tear that they might not feel immediately in cash. The third scenario highlights the limitation on employees: Sarah can’t take that mileage on her federal 1040, but if her state allows it, she should take advantage there.

Note: The tax savings from a deduction equals the deduction amount times your marginal tax rate. A larger deduction is always better, but it benefits high earners more in terms of tax dollars saved. Also, remember a deduction is not a credit – Sarah’s $786 state deduction in NY might save her around $40-$50 in state tax (since state tax rates are maybe around 5-6%), not $786.

Avoid These Common Mileage Deduction Mistakes (Audit Red Flags)

Even when people understand the basics, there are pitfalls that can lead to lost deductions or problems with the IRS. Here are some big mileage deduction mistakes to avoid:

❌ Counting Commutes as Business Miles: You cannot deduct driving from home to your main workplace – this is the #1 mistake. Only travel beyond your regular commute or on work errands counts. Trying to write off your daily commute will not hold up in an audit.

❌ Not Keeping a Mileage Log: Estimating your miles after the fact or guessing is risky. The IRS requires contemporaneous records – basically a log recorded as you go (or soon after). If you get audited and all you have is a round number like “I think I drove 10,000 miles for work,” that won’t fly. Use a notebook, spreadsheet, or an app to log dates, miles, and purposes for your trips. No log = high chance of the IRS denying the deduction if they examine it.

❌ Mixing Personal and Business Expenses: If you use the actual expenses method, be careful to only deduct the business portion. Don’t try to write off 100% of gas or insurance if you also drive the car personally. Calculate the business percentage accurately. For standard mileage, don’t include personal miles in your total. Any personal use (including commuting or side trips) must be excluded.

❌ Double Dipping (Standard + Actual): You have to pick one method per vehicle per year. You can’t take the standard mileage rate and also deduct actual expenses like gas or repairs for the same car in that year. For example, if you use standard mileage, you cannot separately deduct oil changes, new tires, or depreciation for that vehicle (they’re already factored in). An exception is you can still deduct business-related parking and tolls in addition to standard mileage, but nothing else.

❌ Forgetting to Track Small Trips: Every short business errand (a 2-mile trip to the post office to mail a client package, for instance) adds up. People often remember the big trips but forget the small ones. Over a year, those little drives could be hundreds of miles of deductible travel. Log them all. It can make a noticeable difference in your total deduction.

❌ Using the Wrong Year’s Rate: The IRS mileage rate can change annually (and did even mid-year in 2022). Make sure you’re using the correct rate for the miles in each tax year. For example, if you’re calculating 2023 taxes, use 2023’s rates for miles driven in 2023. If you drove in 2024, use 2024’s rates for that year’s tax filing. Don’t accidentally apply the new rate to last year’s miles.

❌ Poor Documentation for Actual Expenses: If you go the actual route, keep all your receipts organized. If you can’t prove you paid for that $800 repair that you deducted, the IRS can disallow it. Keep a folder (physical or digital) for gas receipts, mechanic invoices, insurance statements, etc., alongside your mileage log.

❌ Not Considering Method Switch Implications: If you start with actual expenses and claim heavy depreciation (like a Section 179 immediate write-off on a vehicle), you generally lock yourself out of the standard mileage method later. Plan ahead – if you’re unsure which method will be best long-term, starting with standard mileage in year one keeps your options open. Conversely, if you switch from standard to actual, remember to factor in prior depreciation (the IRS publishes the cents-per-mile portion that counts as depreciation each year to adjust your car’s basis).

Avoiding these mistakes boils down to understanding the rules and keeping good records. Many tax court cases have shown that even well-meaning taxpayers lose car expense deductions because of sloppy or after-the-fact recordkeeping. For instance, courts have upheld IRS denials when taxpayers reconstructed mileage logs long after the fact or had mileage numbers that seemed too “neat” and unsubstantiated. Don’t let that be you – log your miles as you go.

Pros and Cons of Standard Mileage vs Actual Expenses

Choosing between the standard mileage rate and actual expenses can have a big impact on your tax deduction and the effort required. Here’s a side-by-side look at the pros and cons of each method:

Method	Pros	Cons
Standard Mileage	– Very simple to calculate (miles × rate). – Minimal recordkeeping (just track miles, not every receipt). – Rate often yields a generous deduction (especially for high-mileage, low-cost vehicles). – No need to worry about depreciation schedules or car price limits each year.	– May understate costs for expensive vehicles or low-mileage use. – Must use it first year or lose the option for that car. – IRS rate might not keep up with spikes in gas/insurance costs (potentially leaving money on the table in high-cost years). – Not allowed if using 5+ cars at once for business (fleet).
Actual Expenses	– Can maximize deduction if you have high actual costs (luxury car, lots of repairs, high fuel consumption). – Captures the true cost of using the car for business (you deduct what you spend proportionally). – Suitable for fleet usage or situations where standard rate isn’t allowed. – You can switch from standard to actual in a later year if advantageous (with straight-line depreciation).	– Requires extensive recordkeeping (save all receipts, track all expenses and mileage). – Calculation is more involved (must determine business-use % and apply it to each expense). – Depreciation caps can limit deduction for pricey cars. – Once you use actual (with depreciation), you generally cannot revert to standard mileage for that vehicle in future years.

Both methods ultimately should yield a deduction that reflects the business portion of your auto costs. If you’re unsure which is better, you can calculate it both ways for a year and compare. Many tax preparation software programs will do this if you input both the miles and the expenses, or you can run the numbers manually. Choose the method that gives you the bigger deduction and consider the long-term implications (simplicity vs. recordkeeping burden, and flexibility in future years).

Federal vs. State Mileage Deduction Rules (Why Your Location Matters)

Taxes can get tricky because federal and state rules don’t always line up. Mileage deductions are a prime example, especially for employees:

Federal rules (overview):

Self-employed taxpayers can deduct business mileage on Schedule C/F or other business schedules. No federal cap on miles – claim what you actually drove for work.

Employees generally cannot deduct unreimbursed mileage on their federal return for 2018-2025 (due to TCJA changes), except for the special categories (reservists, etc., using Form 2106).

Other mileage (charitable, medical, moving for military) can be deducted on the federal return but only if you itemize (charity, medical) or if you meet the specific criteria (moving expenses only for active-duty military moves).

State differences:
Some states allow deductions that the IRS doesn’t:

As mentioned earlier, certain states still let you claim unreimbursed employee business expenses on your state tax return. For instance, California and New York taxpayers can deduct unreimbursed work mileage as an itemized deduction on the state return, even though it’s not allowed federally. Each of those states has its own form or way to calculate it (often it starts with the federal Form 2106 as a worksheet).

Pennsylvania is an interesting case: it allows unreimbursed employee expenses (including mileage) as a deduction from income on the state return without needing to itemize, and with no 2% threshold. So a PA resident who drives for work can deduct those miles on PA Schedule UE for state tax, even though nothing is allowed on the federal 1040.

Moving expenses: while the federal deduction for moving (and associated mileage) was eliminated for non-military, a few states did not conform to that change. For example, states like Massachusetts and California continued to allow moving expense deductions in certain cases for state taxes. So if you moved for a new job and aren’t military, you can’t deduct it federally, but check your state – there’s a chance your state return might still allow it.

Different rates? Generally, states that allow these deductions use the same mileage rates as the IRS for consistency. They typically reference the federal standard mileage rate. However, always double-check state tax instructions because a state could potentially limit the amount or require specific documentation.

Bottom line: Always consider both your federal and state taxes. A mile not deductible on one might be deductible on the other. It adds complexity because you might have to keep an eye on two sets of rules, but it can save you money. If in doubt, consult your state’s tax resources or a tax professional to see if you can benefit at the state level.

One more note: starting in 2026, the federal rules could change again. The suspension of employee mileage deductions is set to expire after 2025 (unless Congress extends it or makes the change permanent). That means W-2 folks might regain the ability to deduct unreimbursed mileage on their federal return in 2026 and beyond. We’ll have to watch for new tax legislation around that time. For now, plan under current law (no federal deduction for employees) and take advantage of any state allowances if applicable.

Frequently Asked Questions (FAQs)

Q: Can W-2 employees deduct mileage for work?
A: No. Not on federal taxes for 2018–2025. Unreimbursed mileage for W-2 jobs isn’t deductible due to tax law changes (TCJA). Only a few special employee categories or certain states still allow it.

Q: If I claim the standard deduction on my taxes, can I still deduct business mileage?
A: Yes. Business mileage is a separate write-off. You can take the standard deduction for personal taxes and also deduct your mileage on Schedule C (or Form 2106) – itemizing isn’t required for business expenses.

Q: Can I use both the standard mileage rate and actual expenses for the same car?
A: No. You must choose one method per vehicle each year. You either take the per-mile deduction or write off actual costs. For example, you cannot deduct fuel and maintenance in addition to taking the standard mileage rate.

Q: Do I need a mileage log to claim the deduction?
A: Yes. The IRS requires contemporaneous records for mileage. Keep a log of dates, miles, and business purpose for each trip. Without a reliable log, your deduction can be denied if audited.

Q: Are any commuting miles ever deductible?
A: No. Normal commuting from home to your main workplace is not deductible. The only exception is if you go from your home office (as your principal place of business) to another work location – that’s business travel, not commuting.

Q: Can I deduct mileage for charity or medical travel?
A: Yes. If you itemize deductions. Charitable volunteer driving is deductible at 14¢/mile. Medical-related driving (to appointments, etc.) is deductible ~21–22¢/mile (varies by year), but only if your total medical expenses exceed the IRS threshold.

Q: My employer reimbursed me at 30¢/mile – can I deduct the difference?
A: No. Under current federal law, you can’t deduct unreimbursed employee expenses like the difference in mileage reimbursement. In the past (pre-2018) you could if you itemized, but that’s suspended through 2025.

Q: Can I claim mileage for past years that I forgot to deduct?
A: No. To get credit for past-year mileage, you’d have to file an amended return for that year (if still within the amendment period, usually 3 years). Mileage can only be deducted in the year it was driven, on that year’s tax return.

Q: Will a large mileage deduction increase my audit risk?
A: No. A high mileage claim might draw attention, but it’s common in some industries. As long as you have proper documentation (logs and receipts), you shouldn’t fear an audit. Always be prepared to substantiate the miles claimed.