Business mileage deduction: how to track and claim it

Q: What kind of mileage log does the IRS require?

A contemporaneous record: for each business trip, the date, destination or purpose, and miles driven, plus your total annual mileage. 'Contemporaneous' means kept at the time, not reconstructed from memory at tax time. A GPS-based app that logs trips automatically satisfies this and is far more defensible than a guess.

If you drive for work, those miles are money. Here's how the deduction works, which trips qualify, and the log you need to keep to claim it cleanly.

Updated June 2026

Two ways to claim it

Standard mileage rate — multiply your business miles by the per-mile rate the IRS sets each year. Simple, and it already bundles in gas, wear, and depreciation. Best for most people and most cars.
Actual expenses — add up gas, insurance, repairs, lease or depreciation, then deduct the business-use percentage. Worth the extra tracking for expensive vehicles or heavy business use.

You choose one method per vehicle per year (with some rules about switching once you've used actual expenses). The standard rate wins on simplicity for most freelancers.

Which trips count

Driving to a client, customer, or job site
Trips between two work locations
Picking up supplies or equipment, or a business bank run
Travel to a temporary work location

Your daily commute to a regular workplace is personal — not deductible. But if your home qualifies as your principal place of business, driving from there to other work stops generally does count.

The log is the whole game

The deduction lives or dies on records. The IRS wants a contemporaneous mileage log: date, destination or purpose, and miles for each business trip, plus your total miles for the year. Reconstructing it in April from memory is exactly what gets disallowed in an audit.

This is the friction Taxottic's mileage tracker removes: it logs your drives automatically by GPS, you swipe each one business or personal, and the business miles flow straight into your deduction at the current IRS rate — a clean, contemporaneous log without the notebook.

Frequently asked

How does the business mileage deduction work?

You deduct the cost of driving your own vehicle for business in one of two ways. The standard mileage rate multiplies your business miles by a set per-mile rate the IRS publishes each year. The actual-expense method deducts the business-use percentage of your real vehicle costs — gas, insurance, repairs, depreciation. You pick one method per vehicle per year; either way you need a mileage log. See IRS Publication 463.

What driving counts as business mileage?

Driving between work locations, to client or customer meetings, to pick up supplies, to the bank for business, or to a temporary work site. Your regular commute from home to a fixed workplace is personal and not deductible — but if your home is your principal place of business, trips from there to other work locations can count. Keep personal and business miles separate.

What kind of mileage log does the IRS require?

A contemporaneousrecord: for each business trip, the date, destination or purpose, and miles driven, plus your total annual mileage. “Contemporaneous” means kept at the time, not reconstructed from memory at tax time. A GPS-based app that logs trips automatically satisfies this and is far more defensible than a guess.

This guide is general information, not tax, legal, or accounting advice, and isn't a substitute for a licensed CPA or tax attorney. Tax rules change and depend on your situation; figures here are illustrative. Verify specifics against current IRS guidance or with your preparer.