Calculate your mileage tax deduction using the 2025 IRS standard rate of $0.70 per mile. Compare to actual expenses and see your potential tax savings.
The IRS increased the mileage rate from $0.67 (2024) to $0.70 for 2025. This rate covers gas, maintenance, depreciation, and insurance.
Average weekly business miles
Full-time is typically 50 weeks
Annual Mileage Deduction
$0.00
0 miles × $0.70
Weekly Deduction
$0.00
Per week worked
Monthly Deduction
$0.00
Average per month
Total Business Miles
0
Annual miles driven
15% Tax Bracket
$0.00
Lower income tax savings
22% Tax Bracket
$0.00
Most common bracket
24% Tax Bracket
$0.00
Higher income tax savings
These are estimated income tax savings. Your actual savings depend on your total taxable income and filing status.
Every 5,000 miles
Every 50,000 miles
The IRS standard mileage rate is a per-mile amount you can deduct for business use of your vehicle. For 2025, the rate is $0.70 per mile. This rate is designed to cover all vehicle operating costs including gas, maintenance, insurance, and depreciation.
The rate is updated annually based on fixed and variable vehicle operating costs. The 2025 rate increased from $0.67 (2024) due to rising fuel and maintenance costs.
You must choose one method for your vehicle each year. The standard mileage method is simpler - just track miles and multiply by $0.70. The actual expenses method requires tracking all vehicle costs and calculating the business-use percentage.
Most gig workers find the standard mileage method more beneficial, especially if you have a fuel-efficient vehicle. However, if you drive an older car with high maintenance costs, actual expenses might save you more. Use our comparison tool above to find out which is better for you.
The IRS requires "adequate records" to claim the mileage deduction. You need to document the date, destination, business purpose, and miles driven for each trip. A mileage tracking app that automatically logs trips is the easiest way to maintain proper records.
Recommended apps: Stride, Everlance, MileIQ, Gridwise, Hurdlr
Keep records for: At least 3 years from when you file your return
This simulator provides estimates based on your inputs. Actual earnings may vary.