IRS Mileage

IRS mileage is a term used to refer to the tax deduction employees, self-employed and business owners can claim for their business-related mileage.

Every year, millions of individuals use their personal cars for work-related driving. In the case of your employer not reimbursing you for these expenses, the IRS has set up a mileage deduction scheme.

IRS mileage is deducted on a cents per mile basis. The tax authority sets a standard mileage rate each year which is meant to cover all costs of owning and operating your vehicle for business purposes. These costs include lease payments, road tax, insurance, fuel, maintenance and repairs among others.

The mileage rate is decided by the IRS each year based on the cost of owning and operating a vehicle in the United States.

The IRS mileage deduction scheme works in the following way:

You record your business mileage throughout the year in IRS compliant records.
Once the tax year is done, you multiply the driven mileage by that year’s mileage rate to figure out the deduction you can claim.
You claim the mileage deduction on your tax return.

The 2023 mileage rate is 65.5 cents per mile for business-related driving.

The 2022 mileage rate set by the IRS was 58.8 cents per mile. From July 1, 2022 the IRS increased the rate to 62.5 cents per business mile.

If your employer reimburses you for your mileage, you are not able to claim mileage from the IRS.

Learn more about how you can claim IRS mileage depending on your situation in our IRS mileage guide.

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FAQ

What does IRS consider commuting miles?

Commuting miles are considered to be the miles you drive from home to work and back. Unlike business mileage, commuting mileage is not reimbursable or tax-deductible in the US.

How many miles are you allowed to claim on taxes?

There is no cap to the miles you can claim, so long as they are business-related miles you’ve driven throughout the year.

How does the IRS verify mileage?

The IRS verifies mileage claims based on a mileage log that you must keep each year for your driving. Your mileage log must be compliant with IRS rules and contain all the required information, such as your total yearly mileage, odometer readings at the start and end of the year the miles traveled, and the date, destination and purpose for each trip.