The IRS-approved Current Mileage Rate is a standard deduction rate for taxpayers using their personal vehicle for qualifying purposes such as business, medical, moving, or charitable activities. For 2025, the projected rates are:
67¢ per mile for business driving
21¢ per mile for medical or moving (active-duty military)
14¢ per mile for charitable driving
These rates help standardize deductions across the country, making it easier to calculate tax savings. For example, driving 12,000 business miles at the projected rate of 67¢ equals $8,040 in tax-deductible expenses, potentially saving $2,000 in taxes.
Types of Deductible Mileage
Not all driving is deductible. The IRS allows deductions for:
Business Use: Travel between work sites, client meetings, business errands.
Medical Use: Travel to doctor appointments, hospitals, etc. (if itemizing deductions).
Charitable Use: Volunteering for IRS-qualified nonprofit organizations.
Military Moving: For active-duty military members during a permanent change of station (PCS).
How to Track Your Mileage Accurately
To maximize your deduction, keep a mileage log with:
Date of the trip
Purpose and destinations
Total miles driven
Odometer readings (optional but helpful)
Top Tools for Tracking Your Mileage
Apps like Everlance, MileIQ, and TripLog can simplify tracking and ensure IRS compliance.
When to Choose the Standard Mileage Rate vs. Actual Expenses
For most people, using the standard mileage rate is easier and faster. However, for luxury or older vehicles, the actual expense method might yield a higher deduction.
Maximizing Your Deduction
Start tracking early, use apps for accurate logs, and keep records for at least 3 years in case of an audit. Every mile counts!
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