The business mileage rate 2024 is 67 cents per mile for business travel, up from 65.5 cents in 2023. This rate applies to self-employed individuals, freelancers, small business owners, and employees who use their personal vehicle for work and are not reimbursed by their employer.
To calculate your deduction: multiply the total business miles you drove in 2024 by 0.67. For example, 10,000 business miles x $0.67 = $6,700 tax deduction. You report this on Schedule C (self-employed) or Form 2106 (employees in qualifying roles).
| 2024 IRS Standard Mileage Rate: 67 cents per mile for business use | 21 cents per mile for medical/moving | 14 cents per mile for charitable purposes |
IRS Mileage Rates: Year-by-Year
| Tax Year | Business Rate (per mile) | Medical/Moving | Charitable |
|---|---|---|---|
| 2020 | 57.5 cents | 17 cents | 14 cents |
| 2021 | 56 cents | 16 cents | 14 cents |
| 2022 (Jan-Jun) | 58.5 cents | 18 cents | 14 cents |
| 2022 (Jul-Dec) | 62.5 cents (mid-year increase) | 22 cents | 14 cents |
| 2023 | 65.5 cents | 22 cents | 14 cents |
| 2024 | 67 cents | 21 cents | 14 cents |
The IRS adjusts the business mileage rate annually to reflect changes in fuel costs, vehicle depreciation, insurance, and maintenance. The rate is released each December for the following tax year.
Who Can Use the Standard Mileage Rate?
Not everyone qualifies. Here’s who can – and who can’t:
| Can Use Standard Mileage Rate | Cannot Use Standard Mileage Rate |
|---|---|
| Self-employed individuals and sole proprietors | Employees who are fully reimbursed by employer |
| Freelancers driving to client locations | Businesses using 5+ vehicles simultaneously (fleet use) |
| Business owners visiting customers, suppliers, or job sites | Vehicles for which you’ve claimed MACRS depreciation |
| Employees with non-reimbursed business vehicle expenses | Vehicles that claimed Section 179 expensing in a prior year |
| Rideshare/delivery drivers (business portion of miles) | Leased vehicles (if actual expense method was previously chosen) |
Standard Mileage Rate vs. Actual Expense Method
You have two choices for deducting vehicle costs. You must choose one method consistently – you can’t switch back and forth every year:
| Factor | Standard Mileage Rate | Actual Expense Method |
|---|---|---|
| How it’s calculated | Miles driven x IRS rate | Track all actual vehicle costs |
| What it covers | Fuel, depreciation, maintenance all included | Gas, oil changes, insurance, repairs, depreciation – all separately tracked |
| Record-keeping | Just mileage log required | All receipts + mileage log required |
| Best for | High-mileage, lower-cost vehicles | Expensive vehicles or high actual costs |
| Flexibility | Simpler; easier to switch to actual later | Must have chosen this from year 1 for some vehicles |
| Typical deduction (10K miles) | ~$6,700 | Varies – could be more or less |
Rule of thumb: If you drive a newer, expensive vehicle with high insurance and maintenance costs, run the numbers for actual expenses. For most standard vehicles, the standard mileage rate is simpler and competitive.
What Counts as Business Mileage – and What Doesn’t
| Counts as Business Mileage | Does NOT Count |
|---|---|
| Driving to a client’s office or job site | Commuting from home to your regular office |
| Traveling between two work locations | Personal errands during a work day (unless work is primary purpose) |
| Going to a business-related meeting or conference | Driving to a coworking space you use daily (treated as commute) |
| Visiting a supplier or vendor | Trips that are primarily personal with minor work purpose |
| Running business errands (bank, post office for business mail) | Commuting – even if you live far from your office |
| Driving to a temporary work location | Any personal portion of a mixed personal/business trip |
How to Calculate Your 2024 Business Mileage Deduction
Example 1 – Self-Employed Contractor:
Sarah is a freelance photographer who drove 8,400 business miles in 2024.
8,400 miles x $0.67 = $5,628 deduction on Schedule C.
Example 2 – Small Business Owner with Mixed Use:
Marcus drove 22,000 total miles in 2024. Of those, 14,500 were for business. He needs to document both totals in his mileage log.
14,500 business miles x $0.67 = $9,715 deduction.
How to Track Mileage (So Your Deduction Holds Up)
The IRS requires a contemporaneous mileage log – meaning you record trips as they happen, not at tax time. Your log should include:
| Tracking Method | Tool | Cost | Best For |
|---|---|---|---|
| App (automatic tracking) | MileIQ, Everlance, Driversnote | $5-$12/month | People who frequently forget to log |
| App (manual log) | TripLog, Hurdlr | Free or low cost | Occasional drivers wanting simple logs |
| Spreadsheet | Google Sheets / Excel | Free | Organized people who review weekly |
| Physical logbook | Any dated notebook or IRS-style logbook | Under $10 | Low-tech preference or backup record |
How to Claim Business Mileage on Your Tax Return
- Self-employed / sole proprietors: Report on Schedule C (Form 1040), Line 9 (Car and Truck Expenses). Also complete Part IV or attach Form 4562.
- Partners in a partnership: Deduct on Schedule E as unreimbursed partnership expenses.
- S-Corp employees/shareholders: May need to use Form 2106 for unreimbursed employee expenses (subject to limitations).
- C-Corp owners: The business entity deducts vehicle expenses directly on the corporate return.
Common Mistakes That Get Mileage Deductions Rejected
| Mistake | Why It’s a Problem | How to Avoid It |
|---|---|---|
| No mileage log or reconstructed log at year-end | IRS requires contemporaneous records | Log every trip as it happens – even in a notes app |
| Including commuting miles | Home-to-office is explicitly not deductible | Only count trips after arriving at first business location |
| Claiming 100% business use without documentation | Triggers scrutiny – almost no vehicle is 100% business | Track personal miles too; only claim the business % |
| Using the wrong rate for the year | Easy error when filing late or for multiple years | Check IRS.gov each year; 2024 rate is 67 cents/mile |
| Switching methods improperly | Once you use actual expense method, you may be locked in | Understand the rules before Year 1 of a new vehicle |
The 2024 mileage rate of 67 cents per mile is one of the most straightforward tax deductions available to self-employed workers and business owners. The key is documentation – a complete, accurate mileage log is what transforms those miles into real tax savings.
