Rules, How to Calculate IRS Mileage Rates 2024-2025

Learn how to calculate IRS mileage rates for 2024-2025, including deductions for business, medical, charity, and moving miles. Understand standard vs. actual expenses and how to claim tax deductions.

Rules, How to Calculate IRS Mileage Rates 2024-2025

Overview

You might be qualified to deduct some of the mileage on your tax return if you drive for your business or intend to rack up some miles while volunteering this year.

The miles must have been driven for qualifying business, medical, moving, or charitable purposes, and you might have to itemize on your return to be eligible for this deduction. Rates apply to electric, PHEV, petrol, and diesel-fueled vehicles.

Mileage Rates in 2025

The 2025 standard mileage rates apply to 2026 taxes filed. Most remain the same compared to last year; the exception is business miles, which are rising by 3 cents.

• Business: $0.70 per mile
• Charity: $0.14 per mile
• Medical or Moving: $0.21 per mile

Mileage Projections for 2024

Your car usage affects the standard mileage rates. The 2024 rates apply to 2025 taxes filed.

• Business: $0.67 per mile
• Charity: $0.14 per mile
• Medical or Moving: $0.21 per mile

How Do Business Standard Mileage Rates Work?

If you are self-employed or a contractor, you may be eligible to write off car expenses for business use.

• Commuting to work is not deductible.
• You might be able to deduct business-related trips to clients, conferences, or temporary offices.
• You can choose between standard mileage deduction (using IRS rates) or actual expenses (fuel, depreciation, repairs).
• Tolls and parking fees for business purposes are separately deductible.

Comparing Standard Mileage to Actual Company Costs

There are two methods to calculate car-related tax deductions:

1. Standard Mileage Deduction

Multiply the number of business miles by the IRS mileage rate.

• You must own or lease the car.
• If you use multiple vehicles for work, IRS guidelines may be complex.

2. Real Expenses Method

Instead of tracking mileage, you deduct actual vehicle expenses, including:

• Depreciation
• Licenses
• Lease payments
• Registration fees
• Fuel and gas
• Insurance
• Repairs
• Tires

More info on the IRS website

Additional Mileage Rates

Mileage Deduction for Charitable Work

If you use your car for volunteer work, you can deduct:

• Miles driven for nonprofit organizations
• Tolls and parking fees related to volunteering
• Unreimbursed expenses (gasoline and oil)

Not deductible: Repairs, maintenance, depreciation, registration, or insurance.

Read More Farm Bureau Auto Insurance Review for 2025

IRS Mileage Rate for Relocation

Only active-duty military personnel can deduct moving mileage on federal income tax returns.

• The move must be related to a permanent change of station.
• Some states allow nonmilitary taxpayers to deduct moving expenses.

IRS Mileage Rate for Medical Purposes

You may deduct miles driven for medical needs, including:

• Trips to doctors, hospitals, or medical facilities
• Transporting a dependent for medical treatment
• Visiting a dependent undergoing mental health treatment

Tolls and parking fees related to medical travel are deductible.

• Not deductible: Repairs, depreciation, insurance, or maintenance costs.
• Alternative option: Deduct unreimbursed out-of-pocket costs (gasoline, oil).

How to Claim Mileage Tax Deductions?

To claim deductions, you must itemize on your tax return.

• Use Form 1040 and Schedule A (for medical, charity, or moving mileage).
• Self-employed individuals report business mileage on Schedule C.
• Tax software calculates deductions automatically during filing.

Tracking Your Mileage

Keeping an accurate mileage log is essential in case of an IRS audit.

Ways to track mileage:

• Paper logbook in your glove compartment
• Mileage tracking apps (available on Google Play or App Store)