Skip to main content

Mileage Deduction Calculator 2025

IRS standard mileage rate: 70¢/mile for business in 2025. Every mile you log is a real deduction — use it.

(2024 rate was 67¢/mile; 2025 increased to 70¢)

Standard Mileage Deduction (Business)
$10,500
Tax savings: $2,625 at 25% rate
Business
$10,500
15,000 × $0.70
Medical
$0
0 × $0.21
Charity
$0
0 × $0.14

Actual Cost Method Comparison

Standard Method
$10,500
✓ Better for you
Actual Cost Method
$6,600
Track your miles: Use a mileage log app (MileIQ, Everlance, or a simple spreadsheet). Record date, destination, purpose, and miles. You must keep records — the IRS can disallow undocumented mileage.
→ Quarterly tax estimator→ Delivery driver profit calculator

Frequently Asked Questions

What is the 2025 IRS mileage rate?

The IRS standard mileage rate for 2025 is 70 cents per mile for business use. The medical/moving rate is 21 cents per mile, and the charitable rate is 14 cents per mile (set by statute).

Can I deduct mileage for commuting?

No. Commuting miles are never deductible. However, if your home is your principal place of business (as it is for many gig workers), driving from home to your first delivery location may qualify as deductible business travel.

Standard mileage vs actual expenses — which is better?

Standard mileage (70¢/mile) is simpler and better for high-mileage, fuel-efficient vehicles. Actual expenses work better if your vehicle costs are unusually high. You must choose the standard method in your first year of business use — switching to actual later is allowed but not always reversible.

Do I need to keep a mileage log?

Yes. The IRS requires contemporaneous records showing date, destination, business purpose, and miles. Apps like MileIQ, Everlance, or Stride can automate this. Without a log, your deduction can be disallowed in an audit.

Sources: IRS Standard Mileage Rates, IRS Publication 463, IRS Publication 334 (Self-Employment). Last updated March 2026.