How to Claim Vehicle Mileage Deductions in 2025

Filing your income tax return often brings up questions about which expenses you can legally write off. If you spend a significant amount of time driving for work, medical reasons, or volunteering, you might be wondering if those miles can translate into tax savings.

At SD Mayer, we know that understanding the tax code can feel like navigating a maze. Legislative updates regularly shift the goalposts, changing who qualifies for specific write-offs. Recently, the One Big Beautiful Bill Act (OBBBA) made permanent several changes originally introduced by the Tax Cuts and Jobs Act (TCJA). These changes specifically limit who can claim a deduction for business mileage.

However, you might still be eligible to deduct your vehicle expenses. By understanding the current rules, you can make smarter financial decisions and ensure you aren't leaving money on the table. Here is everything you need to know about claiming mileage deductions for 2025 and 2026.

How employment status impacts your deductions

The rules surrounding business mileage deductions depend heavily on how you earn your income.

Historically, employees could deduct unreimbursed business mileage as a miscellaneous itemized deduction. The TCJA suspended this rule, and the OBBBA made that suspension permanent. Therefore, W-2 employees can no longer deduct business mileage related to their employment. If your employer reimburses you for mileage under an accountable plan, those reimbursements are safely excluded from your taxable income.

If you are self-employed, the outlook is much brighter. Expenses for the business use of your personal vehicle are deducted directly from your self-employment income. These expenses remain fully deductible, provided they meet standard IRS qualifications. Driving from your home to a customer’s location qualifies as a deductible expense, while standard daily commuting does not.

Three nonbusiness ways to write off mileage

Even if you cannot claim business mileage, you might still qualify for deductions based on personal vehicle use.

1. Moving expenses

Before 2018, work-related moving expenses were broadly deductible. Under the current rules made permanent by the OBBBA, moving expenses are only deductible for certain military families. Beginning in 2026, this eligibility will expand slightly to include certain members of the intelligence community.

2. Medical appointments

You can deduct the cost of using your vehicle to get to and from medical appointments as an itemized medical deduction. Keep in mind that medical expenses are only deductible to the extent that they exceed 7.5% of your adjusted gross income (AGI). Because the standard deduction is currently quite high, fewer taxpayers find it beneficial to itemize these costs.

3. Charitable work

When you use your personal vehicle for charitable purposes, those miles are deductible as a charitable itemized deduction, assuming the charity does not reimburse you. For the 2025 tax year, there is no AGI floor applied to this deduction. However, starting in 2026, a new 0.5% of AGI floor will go into effect under the OBBBA.

Standard mileage rates for 2025 and 2026

Instead of painstakingly tracking every dollar spent on gas, maintenance, and repairs, the IRS allows you to use a standard mileage rate to compute your deductions. These rates fluctuate based on the purpose of the drive and the tax year:

• Business: 70 cents per mile (2025) / 72.5 cents per mile (2026)
• Moving: 21 cents per mile (2025) / 20.5 cents per mile (2026)
• Medical: 21 cents per mile (2025) / 20.5 cents per mile (2026)
• Charitable: 14 cents per mile (2025 and 2026)

The business rate is significantly higher because it factors in vehicle depreciation, which is not an allowable expense for the other categories. If you opt for the standard mileage rate, you can also add the actual cost of parking fees and tolls to your total deduction.

Why keeping a detailed mileage log matters

Without adequate records, the IRS has the authority to disallow your vehicle expense deduction entirely. Substantiation is critical for protecting your tax return.

If you use the standard mileage rate, your records need to clearly show the date, total mileage, purpose, and destination of every single trip. Maintaining a mileage log throughout the year is the simplest and most effective way to support your claims. If you choose to deduct actual expenses instead of the standard rate, saving your receipts and documentation is equally essential.

Maximize your tax savings with SD Mayer 

Evaluating your deduction opportunities requires a careful look at your specific financial situation. If you are self-employed or plan to itemize deductions, you are in a strong position to benefit from vehicle-related write-offs. You might also qualify for new incentives, such as the auto loan interest expense deduction for vehicles purchased in 2025 or 2026.

You do not have to figure this out alone. At SD Mayer, we partner with you to uncover every possible tax advantage. Contact our team today to discuss your 2025 tax return or to start building a proactive financial strategy for 2026.