Understanding the Current Mileage Rate and How to Track It Accurately

What Is the Current Mileage Rate?

The current mileage rate is the IRS-approved standard rate that taxpayers can use to calculate the deductible cost of driving a personal vehicle for qualifying purposes—such as business, medical, moving (if eligible), or charitable activities. It is updated annually and is one of the simplest and most powerful tools available for reducing taxable income.

For 2025, although the IRS has not officially released the final mileage rates yet, early projections suggest the following:

• 67 cents per mile for business driving
• 21 cents per mile for medical or moving (active-duty military only)
• 14 cents per mile for charitable driving

These rates are based on an average of fuel costs, maintenance, depreciation, and insurance. They represent what it costs to operate a vehicle, and they’re meant to standardize how deductions are calculated across the country.

Why the Current Mileage Rate Matters

Many taxpayers don’t realize how much they can save by tracking their mileage. If you regularly drive for business or other deductible purposes, the current mileage rate can result in hundreds or thousands in tax savings each year.

Let’s take a common scenario: You drive 12,000 miles annually for business. Multiply that by the projected 67¢ mileage rate:

• 12,000 miles × $0.67 = $8,040 in tax-deductible expenses

At a 24% tax rate, that means nearly $2,000 in tax savings—and all you had to do was track your mileage accurately.

What Counts as Deductible Mileage?

Not every mile you drive qualifies for a deduction. The IRS only allows mileage related to specific categories:

Business Use

This includes driving between work sites, meeting clients, running business errands, or attending industry events. Commuting to a regular office, however, is not deductible.

Medical Use

If you itemize your deductions and your total medical expenses exceed 7.5% of your adjusted gross income, you can deduct travel to and from:

• Doctor or therapy appointments
• Hospitals or clinics
• Pharmacies or diagnostic labs

Moving (Military Only)

Active-duty military members can deduct miles driven when moving due to a permanent change of station (PCS). Civilian moves no longer qualify for a deduction under current federal law.

Charitable Use

If you drive on behalf of a qualified 501(c)(3) nonprofit, you can deduct charitable mileage. This includes driving to volunteer events, delivering supplies, or supporting a charity’s outreach work.

How to Track Your Mileage Accurately

To claim a deduction using the current mileage rate, the IRS requires that you keep contemporaneous records—which means tracking your mileage as you go, not estimating it months later.

Your mileage log should include:

• The date of the trip
• The starting point and destination
  
• The purpose of the trip
• The total miles driven
  
• Odometer readings at the start and end (optional but helpful)

Failing to maintain accurate logs could result in denied deductions, even if the trips were legitimate.

Top Mileage Tracking Tools for 2025

Manual logs work, but they’re tedious. Instead, many individuals and businesses use mobile apps that automatically track and classify driving activity.

1. Everlance

• Automatic tracking
• IRS-compliant logs
• Expense and income tracking for freelancers

2. MileIQ

• Great for employees and gig workers
• Tracks and categorizes each trip
• Offers detailed monthly reports

3. TripLog

• Advanced features like odometer sync and fuel expense tracking
• Good for teams or companies
• Manual or automatic trip entry

4. Stride

• Free app for gig workers
• Tracks mileage, expenses, and tax estimates
• Ideal for delivery drivers or rideshare operators

Each of these apps generates reports that can be attached to your tax filings or shared with your accountant.

When to Use the Standard Mileage Rate vs. Actual Expenses

The IRS gives taxpayers two options when it comes to deducting vehicle use:

1. Standard Mileage Rate (Current Mileage Rate)

• Multiply miles driven by IRS rate
• Easier, faster, less paperwork
• Recommended for most people

2. Actual Expense Method

• Add up all vehicle-related costs: fuel, insurance, maintenance, depreciation, etc.
• More complex and record-intensive
• May yield a larger deduction for luxury or older vehicles

Once you choose a method for a vehicle in its first year of business use, you may be restricted from switching between methods in later years.

How to Apply the Current Mileage Rate to Your Taxes

The process depends on how you earn income:

For Self-Employed Individuals

• Report your mileage on Schedule C (Form 1040)
  
• Include your total deductible miles and indicate if you’re using the standard mileage rate
• Answer the IRS questions about your vehicle use, including total miles driven and business percentage

For Employees

• Most can no longer deduct mileage on federal taxes due to the 2017 Tax Cuts and Jobs Act
• However, you can still be reimbursed by your employer tax-free if the mileage rate is at or below the IRS rate

For Military and Charitable Use

• Report moving mileage on Form 3903 (if military)
• Report charitable mileage on Schedule A if itemizing deductions

Tips to Maximize Your Mileage Deduction

• Start tracking on January 1st to capture every mile
• Use a mileage tracking app—automation = accuracy
• Review logs monthly to catch missing trips
• Separate business and personal use clearly
• Save your logs and reports for at least 3 years in case of audit

Even short trips add up. A few miles here and there—picked up consistently throughout the year—can be worth hundreds in tax savings.

Conclusion

The current mileage rate is one of the easiest ways to reduce your tax bill—whether you’re self-employed, a delivery driver, a small business owner, or volunteering for a cause. But it only works if you track your miles accurately and apply the right deduction method.

By understanding how the rate works, using the right tools, and staying consistent, you can turn every qualifying trip into a valuable tax deduction. The more miles you track, the more money you save.