What is the Standard Mileage Deduction?

The standard mileage method can simplify business car expenses. You still need records distinguishing business trips from personal travel and commuting, and the rate must match the period when you drove.

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How the standard mileage deduction is calculated

Multiply eligible business miles by the applicable rate. As a 2025 example, 10,000 eligible miles at 70 cents per mile gives a $7,000 deduction, not a $7,000 tax credit. Use the IRS rate table for the travel date: do not assume one rate always covers the entire year.

Standard mileage vs. the actual expense method

The standard method replaces specified vehicle operating costs; the actual method uses the business share of eligible costs. Do not deduct the same costs under both. Business parking and tolls may be separate. IRS Topic 510 explains eligibility and the restrictions on choosing methods.

For an owned car, using standard mileage in its first business-use year preserves the option to use that method later, subject to the other restrictions. A leased car using standard mileage must continue that method for the lease, including renewals.

Which miles count — and which don't

Record the trip's actual business purpose. Having a delivery or rideshare app switched on does not by itself make every mile deductible. Separate personal errands and commuting from qualifying business travel. Home-to-work travel is generally commuting, but the treatment can depend on facts such as a qualifying home office. IRS Publication 463 explains transportation and commuting rules; use the edition for your tax year.

Why the log is the deduction

Keep records close to the time of travel: date, destination, business purpose and miles, with supporting records as needed. A mileage log is a practical way to substantiate business use. IRS Topic 510 describes the requirement as adequate records or sufficient evidence supporting your statement; a particular app or workbook is not mandatory.

Common standard mileage deduction mistakes

  • Using a rate that does not apply to the travel date.
  • Counting personal or commuting miles as business travel.
  • Deducting vehicle costs already covered by the standard rate a second time.
  • Assuming every vehicle qualifies or that methods can always be switched.
  • Relying on an app's total without records of business purpose.

The standard mileage deduction is only as good as the miles you can prove, and it pairs with the number underneath it — what a mile actually costs your car — to tell you whether a shift really paid. To decide whether a spreadsheet you own or a monthly app is the right home for your log, read spreadsheet vs. mileage-tracking app, or browse every tool on the templates for gig drivers hub, or walk through how to calculate your true rideshare hourly rate to see the deduction in context. When you're ready to keep an audit-ready log without renting one every month, the Gig-Driver Earnings & Mileage Workbook builds it as you drive — a file you buy once and keep.

One honest note: this is a definition, not licensed tax advice. Which deduction method wins for your car, and how your state and local rules apply, are yours to confirm — a tax professional can tell you what applies to you.

Templates that implement this

2 templates

An audit-ready workbook that rolls your shift miles into a running mileage log, applies the IRS rate to show the standard mileage deduction you've earned, and keeps your Schedule-C expenses straight — plus a cost-per-mile tool for the drivers who run a truck.