If you use your personal vehicle for business, charitable, or medical purposes, you may be eligible for a tax deduction based on the standard mileage rate. This rate is set annually by the Internal Revenue Service (IRS) and allows yo💯u to claim a set amount for each mile driven in your personal vehicle for qualifying purposes.

What Is the Standard Mileage Rate?

The standard mileage rate is the amount set by the Internal Revenue Service (IRS) that taxpayers can 澳洲幸运5官方开奖结果体彩网:deduct for each mile they drive for business, medical, or charitable purposes. This rate covers the 澳洲幸运5官方开奖结果体彩网:vehicle operating costs, including main🔯tenance, insurance, gas, and depreciation.

The IRS adjusts the mileage rate annually, considering factors such as gas prices, vehicle maintenance costs, and 澳洲幸运5官方开奖结果体彩网:depreciation.

• For the 2024 tax year, the standard mileage rate for business use was 67 cents per mile. For medical purposes it was 22 cents per mile, and for charitable purposes it was 14 cents per mile.
• The standard mileage rate for the 2025 tax year increased to 70 cents per mile while all other rates remained the same.

By the way, the IRS doesn't care if your car is gas-powered or electric. The standard mileage deduction is the same for all vehicles.  As always, you can itemize your costs or take the standard deduction.

How the Rates Are Set

The IRS bases the mileage rates on cost data and analysis compiled by Motus (formerly Runzheimer). Motus uses data from across the country to measure auto insurance premiums, gas prices, maintenance costs, depreciation, and other costs that go into operating a vehicle.

The standard mileage deduction for operating a vehicle for business purposes is based on both the fixed and variable costs of driving a car, while the standard mileage deduction for operating a vehicle for medical or moving purposes is based only on the variable costs of driving a car.

The standard mileage deduction for using a car for charitable purposes is based🌳 on minimums established by federal law and is meant to reimburse taxpayers for the out-of-pocket costs of volunteer work.

Which Method Should You Use?

While a taxpayer can choose to deduct actual expenses or take the standard mileage deduction, the taxpayer who takes the standard deduction♚ has a much simpler and less error-prone job to do. The odometer checks are necessary in either case to arrive 🐻at the total number of miles used for business. However, no receipts need to be saved if the standard mileage amount is used.

To claim the standard mileage rate on a vehicle, the taxpayer must own or lease it. The taxpayer can claim the st꧂andard mileage rate on up to four vehicles.

Commuting to a regular place of business is not deductible, but driving to client meetings or events may be. A taxpayer can deduct mileage when providing services, like volunteering at an event for a 501(c)3 charitable organization.

Example of Standard Mileage Rate

A taxpayer owns a 2020 Ford Escape and drives it for business purposes. The taxpayer can claim the s🐻tandard mileage rate for every mile driv𓄧en for business purposes during the year.

To claim this rate, the taxpayer logs all the miles driven for business purposes in a notebook kept in the car's glove box. (Naturally, there are apps for this, too.)

At the end of the year, the taxpayer multiplies the number of miles driven for business purposes by the 2025 standard mileage rate of 70 cents per mile.

A taxpayer who drove 4,500 🎐miꦕles for business purposes in 2025 could then deduct 4,500 multiplied by 0.70, or a total of $3,150.00 as an allowable business expense.

The Bottom Line

As always, itemizing your expenses is a lot more work than taking the standard deduction. In the case of the standard mileage rate for business use of a vehicle, it may save you money depending on how much you 🌳use your car for work, and how important that vehicle is to your income.

If you're a ride-sharing driver, for example, you probably will find it worthwhile to keep all of your receipts and itemize your real expenses. In that case, get yourself a g🐭ood ex꧒pense-tracking app.

Whether you're taking the standard mileage rate or itemizing, make sure to keep an accurate log book and record every trip you take for business in your personal vehicle.