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Business Nov 28, 2025 6 min read
How to Track Business Mileage: A Complete Guide
Everything you need to know about tracking mileage for tax deductions, including IRS requirements and best practices.
For gig workers, real estate agents, and mobile freelancers, the mileage deduction can be one of your largest annual write-offs. In 2025, the standard mileage rate is expected to be around 67 cents per mile (verify with current IRS data).
Standard Mileage vs. Actual Expenses
You have two choices:
- Standard Mileage Rate: Multiply your business miles by the IRS rate. Simple and often yields a higher deduction for economy cars.
- Actual Expenses: Track gas, insurance, repairs, depreciation, and lease payments. multiply by the business use percentage.
What Counts as a Business Mile?
Deductible: Driving from your office to a client site, driving between job sites, driving to pick up supplies.
Not Deductible: Commuting from your home to your regular place of business (even if you're freelancing at a coworking space regularly).
IRS Documentation Requirements
To claim the deduction, you must keep a log (digital or paper) containing:
- Date of the trip
- Mileage driven
- Destination
- Business purpose