Can I deduct the mileage that I put on my car?

Yes! But it depends if you choose the standard mileage deduction or use the actual expense method.

The standard mileage deduction: This method is taken based on the number of business miles you drive with your car. 

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including all the costs to operate your vehicle: gas, depreciation, oil changes, maintenance, repairs, tire changes, car insurance, license, and registration, etc. Instead of adding up all of those expenses, you simply multiply your mileage by the approved rate and deduct that!

For 2024, the business mileage rate is 67 cents per mile. For 2023, the rate was 65.5 cents per mile.

The business mileage rate for the first half of 2022 was 58.5 cents per mile and starting July 1st, 2022 through the end of the 2022 tax year, the business mileage rate was 62.5 cents per mile.

Are you unsure if the standard mileage deduction is right for you? Check out this page for help deciding!

The actual expense method: With this method, instead of simply deducting your miles, you add up your entire set of actual expenses and deduct that amount. This method is more time-consuming but can yield a higher deduction in some situations. If you purchased a vehicle within the past year or you have a gas guzzler that is expensive to maintain, deducting your actual vehicle expenses may be a better option. You will be able to deduct depreciation expenses associated with car ownership. 

Important note: if you use the actual expense method in the first year that your car is operational for your business, you must continue to use the actual expense method in future years.

Have a look at this page for more information on actual expenses.

Deductions you can take regardless of which rate you choose (per the percentage you use your vehicle for business): 

• Car loan interest

• Tolls and parking fees for business trips

• Towing charges

• Auto club dues (ex. AAA)

• Garage rent

If you haven’t been tracking your business mileage—don’t panic! Some apps (like Uber) will track your on-trip mileage for you, so you’ll be able to deduct this amount at the very least. Here’s where you can read more about how to fill in the blanks on your mileage log.

Having technical mileage tracking issues with the app? Check out this page for common issues and problem-solving.