The IRS set the 2024 standard mileage rate at 67 cents per mile for business driving, 21 cents per mile for medical and moving expenses, and 14 cents per mile for charitable work

These rates explore if you are self-employed, work for an employer that reimburses mileage, or track deductible driving for tax purposes. The IRS updates these rates annually, usually in December for the following year. The business rate covers the largest category of driving claims and includes wear and tear, fuel, insurance, and maintenance rolled into a single per-mile figure.

The rates differ because the IRS calculates them separately based on actual cost data. Business driving generates higher per-mile costs than medical appointments or charity work because it typically involves longer distances and heavier vehicle use. If your employer or organization uses a different rate, you can use either their rate or the IRS rate — whichever is lower — for tax deduction purposes, though your employer may reimburse you at their own rate regardless.

Key Takeaways

  • The 2024 IRS business mileage rate is 67 cents per mile; medical and moving is 21 cents; charitable is 14 cents.
  • These rates explore to self-employed people, employees seeking reimbursement, and anyone deducting mileage on their tax return.
  • Your employer or organization may set their own rate, and you can use either their rate or the IRS rate for tax purposes.
  • To claim mileage, you must keep a log showing the date, destination, business purpose, and miles driven for each trip.
  • The IRS updates these rates annually in December, so the 2025 rate will differ from the 2024 rate.

How the IRS calculates the standard mileage rate

The IRS bases the mileage rate on a study of actual vehicle operating costs, including depreciation, fuel, maintenance, insurance, and registration fees. The agency does not publish the exact breakdown of these costs, but the rate is meant to cover all expenses associated with operating a vehicle for the stated purpose. The rate changes when fuel prices, maintenance costs, or other factors shift significantly enough to affect the overall cost per mile.

The business rate is highest because business driving typically covers longer distances and involves more wear on the vehicle than occasional medical appointments or volunteer work. The charitable rate is lowest because charitable driving is considered a donation of your time and vehicle use, and the IRS sets it conservatively. These three categories are the only standard rates the IRS publishes; other uses of a vehicle require you to track actual expenses instead.

Using the standard rate versus tracking actual expenses

You have two methods to deduct vehicle expenses: the standard mileage rate or actual expense tracking. With the standard rate, you multiply your miles by 67 cents (or the applicable rate) and claim that total. With actual expenses, you record every gas purchase, maintenance bill, insurance payment, and depreciation, then deduct the portion that applies to business use.

The standard rate is simpler and works well if you drive a typical vehicle and do not have unusually high expenses. Actual expense tracking can yield a larger deduction if your vehicle is expensive to operate, you drive a truck or SUV with high fuel costs, or you have significant repair bills. Once you choose a method for a vehicle in the first year you use it for business, you must stick with that method for the life of the vehicle. If you switch methods later, the IRS requires you to use depreciation tables, which can be complex.

Employer reimbursement and the accountable plan rules

If your employer reimburses you for mileage, the reimbursement is tax-free to you only if it follows IRS accountable plan rules. An accountable plan requires three things: the reimbursement must be for business expenses only, you must account for the expenses (show dates, destinations, and miles), and you must return any excess reimbursement to your employer.

Many employers use the IRS standard rate as their reimbursement rate because it is straightforward and automatically satisfies the accountable plan requirement. If your employer reimburses you at a higher rate, the excess over the IRS rate is taxable income to you and must be reported on your W-2. If your employer reimburses you at a lower rate, you cannot deduct the difference on your personal tax return — you are limited to what they paid you.

Keeping records for mileage deductions

The IRS requires contemporaneous written evidence of your mileage. This means you should record trips as you make them, not reconstruct them later from memory. Your log should include the date of the trip, the starting and ending location (or the destination and miles driven), the business purpose of the trip, and the number of miles. A straightforward notebook, spreadsheet, or mileage tracking app will satisfy this requirement.

You do not need to record every single trip if you can establish a pattern. For example, if you drive to the same client office every Tuesday and Thursday, you can record the mileage for one week and note that this pattern repeats throughout the year. However, the IRS expects you to have some written record, even if it is not a daily log. If you are audited and cannot produce records, the IRS will disallow the deduction entirely.

When the 2024 rate applies and when it changes

The 2024 rate of 67 cents per mile applies to all business mileage driven from January 1, 2024 through December 31, 2024. If you drove business miles in 2023, you would have used the 2023 rate (65.5 cents per mile) for that year. The IRS typically announces the following year's rate in late November or early December, giving taxpayers and employers time to plan for the new year.

If you drove business miles before January 1, 2024, or after December 31, 2024, you must use the rate for the year in which you drove. You cannot use the 2024 rate retroactively for 2023 miles, and you cannot use it for 2025 miles. When you file your 2024 tax return, you will report only the mileage driven in 2024 at the 2024 rate.

Self-employed drivers and Schedule C reporting

If you are self-employed, you report vehicle expenses on Schedule C (Profit or Loss from Business). You can claim the standard mileage rate by entering your total business miles for the year and multiplying by 67 cents, or you can itemize actual expenses. The standard rate method is faster and requires less documentation, though you still need to keep a mileage log to support your claim.

Self-employed people often benefit from the standard rate because it is straightforward and the IRS accepts it without question if you have basic records. However, if you own multiple vehicles, use a vehicle for both business and personal driving, or have significant repair or depreciation expenses, actual expense tracking may produce a larger deduction. Consult a tax professional if you are unsure which method will benefit you most.

Frequently Asked Questions

Can I use the 2024 rate for miles I drove in 2023?

No. You must use the rate for the year in which you drove the miles. Miles driven in 2023 use the 2023 rate (65.5 cents per mile for business), and miles driven in 2024 use the 2024 rate (67 cents per mile). The IRS does not allow retroactive use of a new rate for prior years.

What if my employer reimburses me at a rate lower than 67 cents per mile?

You can only deduct the amount your employer actually paid you. You cannot claim the difference between their rate and the IRS rate on your personal tax return. If the reimbursement is significantly low, you may want to discuss it with your employer or HR department, but the IRS will not allow you to supplement it with a personal deduction.

Do I need to track mileage if I use the standard rate?

Yes. The IRS requires contemporaneous written evidence of your mileage, even if you use the standard rate. You must keep a log showing dates, destinations, business purpose, and miles driven. Without this documentation, the IRS can disallow your entire deduction if you are audited.

Can I use the standard rate for a vehicle I also use for personal driving?

Yes, but you can only deduct the business miles. If you drive a car 10,000 miles total in 2024 and 6,000 of those miles are for business, you multiply 6,000 by 67 cents. You must keep records showing which trips were business and which were personal.

What happens if I switch from the standard rate to actual expenses in a later year?

Once you choose a method for a vehicle, you must stick with it for that vehicle's life. If you want to switch to actual expenses after using the standard rate, the IRS requires you to use depreciation tables based on the vehicle's original cost and the year you first used it for business. This can be complicated, so consult a tax professional before making the switch.