Business mileage deduction: how to track and claim it
How the IRS business mileage deduction works, what counts as a deductible trip, and the simplest way to keep a compliant mileage log.
Direct answer
The IRS allows self-employed individuals and small business owners to deduct business miles driven at the standard mileage rate (67 cents per mile for 2024). You can also use the actual expense method (tracking real fuel, insurance, and depreciation costs). Most small businesses use the standard rate — it's simpler and often yields a higher deduction.
Simple explanation
Business mileage is one of the most commonly missed small business deductions. Every trip to a client's office, supply store, bank, or job site is potentially deductible — but only if you document it. The IRS requires a contemporaneous mileage log, meaning records kept at or near the time of each trip, not reconstructed months later.
How to track and claim business mileage
- 1
Know what qualifies as a business mile
Driving to a client meeting, job site, bank for a business deposit, office supply store, or business networking event qualifies. Commuting from home to a regular office does not. If your home office is your principal place of business, then driving from home to any business destination qualifies.
- 2
Keep a mileage log
For each trip record: the date, starting and ending location, business purpose, and miles driven. A small notebook works, but a mileage tracking app (MileIQ, Everlance, or Google Maps history) is much easier and creates an audit-ready log automatically.
- 3
Calculate your deduction
Multiply total business miles by the IRS standard rate for that year. For 2024: total business miles × $0.67. Example: 3,000 business miles × $0.67 = $2,010 deduction. Claim this on Schedule C (for sole proprietors) or your business return.
- 4
Track total odometer readings at year-start and year-end
The IRS may ask for your total vehicle mileage for the year to verify the business percentage. Note your odometer at January 1 and December 31.
Summary
- •The 2024 IRS standard mileage rate is 67 cents per business mile.
- •Record date, destination, purpose, and miles for every business trip.
- •Commuting to a regular office doesn't count — client and errand trips do.
- •A mileage app creates an automatic, audit-ready log with minimal effort.