What Is the Mileage Allowance?

“Mileage allowance” is a term used by the Internal Revenue Service (IRS) to refer to the tax deduction available for taxpayers who use their personal vehicles for certain types of travel, including business, medical, charitable, and moving purposes. The IRS allows taxpayers to deduct a set amouღn༺t for each mile driven for these activities.

For 2025, the IRS allows you to deduct $0.70 per mile for business use, $0.14 for charity use, and $0.21 for certain medical and moving uses (for 2024 it's $0.67, $0.14, and $0.21, respectively).

How the Mileage Allowance Works

Taxpayers can use the IRS mileage allowance to calculate their 澳洲幸运5官方开奖结果体彩网:deductions or can choose to deduct the actual costs of using their vehicle. If you choose to deduct actual expenses, it is important to maintain detailed records, including fuel, repairs, insurance, and maintenance receipts.

The IRS bases its mileage allowance on an annual study of car-related costs, which include fixed and variable expenses. The rate for business travel incorporates fixed costs (like 澳洲幸运5官方开奖结果体彩网:depreciation) and variable costs (such as fuel). However, the mileage rate for medical and moving purposes only reflects variable costs, such as fuel, maintenance, and repairs.

You do not need to track specific costs like gas or car repairs if you choose the mileage allowance. Instead, you simply multiply the number of miles driven by the IRS’s standard rate for the corresponding category (business, medical, charity, or moving).

IRS Regulation of Mileage Allowance

Travel should be strictly business-related when mileage deductions are claimed for business purposes. 澳洲幸运5官方开奖结果体彩网:Commuting to and from your regular place of employment does not qualify for deduction. However, business-related travel, such as driving to meet clients, attending conferences, or traveling to purchase supplies, is eligible for the 澳洲幸运5官方开奖结果体彩网:mileage deduction.

The mileage allowance also applies to medical travel if the miles driven are essential for accessing medical care. However, the deduction is limited to the actual travel distance necessary to get to a medical facility.

For 澳洲幸运5官方开奖结果体彩网:moving expenses, the deduction was eliminated for most taxpayers starting in 2018. However, if you are an active-duty member of the U.S. Armed Forces and must relocate due to a military order, you can still claim moving-related mileage if the move meets specific requirements under the 澳洲幸运5官方开奖结果体彩网:Tax Cuts and Jobs Act of 2017. These include passing a distance test (where your new job is at least 50 miles farther from your old home than your previous job) and working full-time for at least 39 weeks during the first 12 months after the move.

The Bottom Line

The mileage allowance provides a simplified way to deduct vehicle-related expenses for business, medical, charitable, or moving purposes. You can either use the IRS’s standard rate or deduct actual costs, but you need to keep accurate records to ensure the deductions are legitimate. Personal mileage, such as commuting to work, is not deductible. Always keep detailed documentation to substantiate your deductions. If you’re eligible for moving deductions (such as military personnel), be sure to meet all IRS requirements.