Is mileage tax deductible?
It depends. Business mileage is often deductible when the driving is for business purposes and you keep good records. Commuting and personal driving are generally not deductible.
← Back to Expense deductibility guide
On this page: Short answer · Who this applies to · When it’s deductible · When it’s not deductible · Example · Records · Specific lookups · FAQ
Short answer
Depends. Mileage may be tax deductible when it is business mileage (driving to earn business income) and you keep records to support the claim.
A common “no” case is commuting (regular travel between home and your usual work location), which is generally considered personal.
Who this typically applies to
- Self-employed / freelancers driving to meet clients, visit job sites, or run business errands
- Contractors traveling between job locations or to pick up tools/materials
- Small business owners using a vehicle for sales calls, deliveries, or operational travel
Employees may be limited depending on reimbursement rules and current tax treatment.
When it’s more likely deductible
- The driving is for a clear business purpose (client meeting, job site, business errand)
- You can separate business vs personal use (usually with a logbook/app)
- You keep consistent records (dates, destination, purpose, distance)
- You don’t double-claim costs that were reimbursed
When it’s not deductible (or risky)
- The driving is personal or regular commuting
- You estimate mileage without a log, app records, or other support
- You claim 100% business use but personal use is clearly significant
- The trip purpose isn’t documented (no client/job/site/purpose noted)
Example
Example: business vs personal allocation
- Total driving for the period: 1,000 miles
- Business miles (documented): 650 miles
- Business-use percentage: 65%
Use a consistent method and keep records that support your business mileage.
What records to keep
- Mileage log (date, destination, business purpose, distance or odometer readings)
- Starting and ending odometer readings for the year/period (if you use odometer method)
- Notes tying trips to business activity (client name, job site, invoice/project)
- If claiming vehicle expenses too: fuel/maintenance/insurance receipts as applicable
Disclosure: This page may contain affiliate links. If you use them, we may earn a commission at no extra cost to you.
Tools that can help
Mileage tracking apps can help automatically log trips, categorize business vs personal, and export reports.
- MileIQ (automatic mileage tracking)
- Everlance (mileage + expense tracking)
- Hurdlr (track mileage and expenses)
If you also track vehicle-related receipts, accounting tools can help keep everything organized.
FAQ
Is mileage tax deductible?
It depends. Business mileage is often deductible when it is tied to business activity and you keep proper records. Personal commuting is generally not deductible.
Do I need a mileage logbook to claim mileage?
Usually yes. A mileage logbook (or equivalent records) is commonly required to support business vs personal use and to substantiate your claim.
What records should I keep for mileage deductions?
Keep a mileage log with dates, destinations, business purpose, starting/ending odometer readings (or distance), plus supporting receipts if you claim vehicle expenses.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: January 2026