January 20, 2025

Businesses generally can deduct the entire cost of operating a vehicle for business purposes. Alternatively, they can use the business standard mileage rate, subject to some exceptions. Such rate is updated at least annually, and the last update is effective as of January 1, 2025 as the table below.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) for 2025 and 2024 are:

* Federal law only allows a moving expense deduction for active-duty military
The deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Self-employed individuals also may use the standard rate, as can employees whose employers do not reimburse, or only partially reimburse, them for business miles driven.
The use of standard mileage rate has the advantage that taxpayers do not need to keep records of actual vehicle expenses. Many taxpayers use the standard mileage rate to simplify record-keeping and accounting processes. However, even with the standard mileage rate, it is necessary to record details such as the date, location, mileage, and purpose. Below is the example of a mileage log.
You can download the template here, if you would like use it.(see appendix A).

The standard mileage rate is considered to cover most vehicle-related expenses, such as maintenance and repairs, gasoline and oil, depreciation, insurance, vehicle registration, and permits.
Mileage related to unreimbursed business expenses and moving expenses are limited to certain taxpayers as a result of the Tax Cuts and Jobs Act for tax years 2018 through 2025:
■Business expenses
Unreimbursed business expenses subject to a 2% floor as an itemized deduction have been eliminated.
Eligible taxpayers for business mileage expenses:
・Members of a reserve component of the U.S. Armed Forces,
・State and local government officials paid on a fee basis, and
・Certain performing artists
■Moving expenses
Eligible taxpayers for moving expenses:
・A member of the Armed Forces of the United States on active duty, and
・Moving under a military order and incident to a permanent change of station.
Taxpayers also have the option to calculate expenses based on actual costs instead of using the standard mileage rate. In that case, taxpayers must keep records that provide sufficient evidence to substantiate the actual expenses.
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