Mileage Deduction for the Self-Employed (2025)

Short answer: the 2025 IRS standard mileage rate is $0.70 per business mile. Multiply your business miles by the rate (it already covers gas, maintenance, insurance, and depreciation), or use the actual-expense method instead. Your commute does not count, and you must keep a mileage log. It is one of the largest, most under-tracked deductions for anyone who drives for work.

The two methods

Standard mileage rate: business miles × $0.70 (2025). Simple, and usually larger for an ordinary car. Actual expenses: the business-use percentage of gas, insurance, repairs, depreciation, and lease payments. Better for expensive or heavily driven vehicles. You choose a method in the first year the car is used for business; if you want the flexibility to switch later, start with the standard rate.

Which miles count

Deductible: driving to clients and job sites, supply and bank runs, and between work locations. For gig drivers, miles with a passenger or delivery and driving to the next pickup.
Not deductible: your commute from home to a regular workplace, and personal trips.
On top of the rate: tolls and parking are deductible separately.

A qualifying home office can turn drives that would be non-deductible commuting into deductible business miles, because your trips start from your principal place of business.

Keep an IRS-proof log

The IRS wants a contemporaneous record: the date, miles, and business purpose of each trip, plus your total annual mileage. Reconstructing it in April rarely holds up. Log trips as they happen with a mileage app or a tool like NeoReceipt, which records your business miles at the IRS rate alongside your receipts, so your deduction is documented and audit-ready.

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Frequently asked questions

What is the 2025 standard mileage rate?+

The IRS standard mileage rate for business driving in 2025 is 0.70 per mile. You multiply your business miles by this rate to get your deduction, and it already includes gas, maintenance, insurance, and depreciation.

Standard mileage rate vs actual expenses, which should I use?+

The standard mileage rate is simplest and usually larger for an ordinary car: business miles times the IRS rate. The actual-expense method deducts the business-use percentage of gas, insurance, repairs, depreciation, and lease payments, and can win for expensive or heavily used vehicles. You must choose a method the first year you use the car for business.

Which miles are tax deductible?+

Miles driven for business: to client sites, job sites, the bank, supply runs, and between work locations. For gig drivers, that includes time with a passenger or delivery and driving to the next pickup. Your commute from home to a regular workplace is not deductible, though a qualifying home office can make most of your business driving deductible.

Do I need a mileage log?+

Yes. The IRS expects a contemporaneous log showing the date, miles, and business purpose of each trip, plus your total annual mileage. A mileage app or a tool like NeoReceipt that lets you log trips keeps this proof so your deduction holds up in an audit.

Can I deduct gas if I use the standard mileage rate?+

No. The standard rate already includes gas, maintenance, and depreciation, so you cannot also deduct those. Tolls and parking are the exception, they are deductible on top of the mileage rate.

How much is the mileage deduction worth?+

A lot for anyone who drives for work. At 0.70 per mile, 10,000 business miles is a $7,000 deduction, which lowers both your income tax and your 15.3% self-employment tax. It is one of the most under-tracked deductions.

Trusted by drivers & freelancers

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See how freelancers capture the mileage deduction with NeoReceipt.

NeoReceipt saved me during tax season. As a freelance graphic designer, I had receipts scattered across emails and folders. In just three months, NeoReceipt automatically categorized over 400 receipts and helped me identify nearly $2,300 in deductible expenses I would have otherwise missed.

SMSarah MitchellFreelance Graphic Designer

I drive for Uber and DoorDash full-time, and tracking gas and maintenance receipts was a nightmare. After switching to NeoReceipt, I reduced my bookkeeping time from 4 hours a week to less than 20 minutes and had every expense ready for my accountant.

JRJames RodriguezRideshare Driver

As a real estate agent, I'm constantly on the road and collecting receipts from multiple vendors. NeoReceipt helped me recover over $4,100 in business deductions last year by ensuring nothing slipped through the cracks.

JPJessica ParkerReal Estate Agent

Reviews from early NeoReceipt users. Individual results vary.