Tax Deductible Car Miles - IRS Standard Mileage Rates

save money on your taxes by deducting your cars mileage It might not be a car, but it's a way to avoid high gas prices and the gas tax!

If you are using your car for qualified business, medical, or charitable purposes, you can deduct your vehicle expenses. For a vehicle you own or lease, you can deduct either the actual expenses or the standard rate per mile driven. If the car is leased and you use the standard mileage rates, you must use the standard rates for the entire life of the lease.

What Are the Standard Mileage Rates?

The standard tax deductible mileage rates for 2013 (and for earlier years) are listed below. If you itemize deductions, you can deduct these amounts from your taxable income.

Remember that these mileage rates are optional and you may use the actual vehicle expenses as your deduction if you kept detailed records, such as a mileage log.

2013 Tax Year Standard Deductible Mileage Rates from January 1, 2013 - December 31, 2013

ATTENTION: The following mileage rates are for your current 2013 Tax Return, which is due April 15, 2014.  Read our list of mileage rates for other Tax Years if you need the mileage rates for a previous or future Tax Year.

The optional standard tax deductible IRS mileage rates for the use of your car, van, pickup truck, or panel truck during 2013 are:

  • 56.5 cents per mile driven for business purposes
  • 24 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Additional Vehicle Use Deductions: In addition to the standard mileage rates, you may deduct the costs of tolls and parking while using your vehicle for one of the approved purposes. These are separate deductions. However, if you have claimed vehicle depreciation, you may not deduct tolls and parking fees.

Standard Mileage Rate Restrictions: The standard mileage rates may not be used for vehicles used as equipment, or for more than four vehicles used simultaneously. You cannot use the standard mileage rates if you claim vehicle depreciation.

What Are Deductible Business Miles?

Deductible business use of your car does not cover normal commuting to your usual place of work. Qualified deductible business use includes:

  • Driving to a business meeting away from your usual workplace
  • Meeting clients or customers
  • Getting from your home to a temporary workplace
  • Getting from your regular workplace to a second workplace, for the same job or business

If you use your car only for your job or business, you may deduct all of the miles driven or actual vehicle expenses. But if you also use the car for other purposes, you can only deduct the portion used for business purposes.

Can I Deduct Miles or Expenses for Commuting to Work?

Normal commuting from your home to your regular workplace and back is not deductible. You may deduct business mileage only if you are traveling to and from a temporary work location, from one work location to another, to meet with a client, to a conference, etc.

What Medical Transportation Expenses Can I Deduct?

Expenses for primary transportation to medical care facilities that qualify as medical expenses are:

  • Actual fees or fares for a taxi, bus, train, or ambulance
  • Out-of-pocket expenses for using your own car, or the standard mileage rate
  • Fees for tolls and parking

What Actual Car Expenses Can I Deduct?

Instead of using the standard mileage rates, you may use the actual costs of operating your car instead. You will need to keep accurate records. Qualified for this purpose include: gasoline, oil, tires, repairs, insurance, tolls, parking, garage fees, registration fees, lease payments, and depreciation licenses.

Tax Planning Tip: Keep records of your deductible mileage each month with a simple journal or mileage log. For your convenience, we have prepared a downloadable mileage log which you can print and fill out each month.

Download the efile.com Mileage Log.

For more information, see Publication 463 - Travel, Entertainment, Gift, and Car Expenses.

Previous Year: 2012 Tax Year Standard Deductible Mileage Rates: January 1, 2012 - December 31, 2012 

ATTENTION: The following mileage rates are for 2012 Tax Returns. Do not use these rates for your 2013 Tax Return.

The optional standard tax deductible IRS mileage rates for the use of your car, pickup truck, van, or panel truck during 2012 are:

  • 55.5 cents per mile driven for business purposes
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Additional Vehicle Use Deductions: In addition to the standard mileage rates, you may deduct the costs of tolls and parking while using your vehicle for one of the approved purposes. These are separate deductions. However, if you have claimed vehicle depreciation, you may not deduct tolls and parking fees.

Standard Mileage Rate Restrictions: The standard mileage rates may not be used for vehicles used as equipment, or for more than four vehicles used simultaneously. You cannot use the standard mileage rates if you claim vehicle depreciation.

Prior Year: 2011 Tax Year Standard Deductible Mileage Rates from Jan. 1, 2011 - June 30, 2011

The standard deductible IRS mileage rates for the use of a car, van, pickup, or panel truck during the first half of 2011 (from January 1 to June 30) are:

  • 51 cents per mile driven for business purposes
  • 19 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Prior Year: 2011 Standard Deductible Mileage Rates from July 1, 2011 - Dec. 31, 2011

The standard tax deductible mileage rates were adjusted by the IRS for the second half of 2011 (from July 1 to December 31). These mileage rates are:

  • 55.5 cents per mile driven for business purposes
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Additional Deductions: You may also deduct the costs of tolls and parking while using your vehicle for business, medical, or charitable purposes, as long as you have not claimed depreciation on the vehicle.

Standard Mileage Rate Restrictions: The standard mileage rates may not be used for hired vehicles, for vehicles used as equipment, or for more than four vehicles used simultaneously. If you are claiming deductions for vehicle depreciation, then the standard mileage rate must be reduced by the depreciation component (22 cents per mile for 2011).

Actual Car Costs: Alternatively, you may calculate and keep records of the actual costs of operating your car instead of using the standard IRS mileage rates. Qualified actual costs include gas, oil, tires, repairs, insurance, tolls, parking and garage fees, registration fees, lease payments, and depreciation licenses.

Prior Year: 2010 Deductible Mileage Rates: January 1, 2010 - December 31, 2010

The tax deductible standard mileage rates for the use of a car, van, pickup, or panel truck in 2010 are:

  • 50 cents per mile for business miles driven
  • 16.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Additional Deductions: You may also deduct the costs of parking and tolls while using your vehicle for one of the above purposes if you have not claimed vehicle depreciation.

Standard Mileage Rate Restrictions: The standard mileage rates may not be used for hired vehicles or for more than four vehicles used simultaneously. If you are claiming deductions for vehicle depreciation, then the standard mileage rate must be reduced by the depreciation component (23 cents per mile for 2010).

Actual Car Costs: The option of calculating the actual cost of using your vehicle rather than using the standard mileage rates remains.

Prior Year: 2009 Deductible Mileage Rates: January 1, 2009 - December 31, 2009

The standard mileage rates for the use of a car, van, pickup, or panel truck:

  • 55 cents per mile for business miles driven
  • 24 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Standard Mileage Rate Restrictions: The business standard mileage rate may not be used for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

Furthermore, business standard mileage rates cannot be used for vehicles used for hire or for more than four vehicles used simultaneously.

Prior Year: 2008 Deductible Mileage Rates: July 1, 2008 - December 31, 2008

Mileage Rate increases to 58.5 cents per mile.

The increased gas prices have a major impact on individuals who use their automobile for business use. The new standard business mileage reimbursement rate for July 1, 2008 - Dec. 31, 2008 is 58.5 cents. This rate is used as an option to compute deductible business related automobile costs. (If you are using your automobile for private and business use). The alternative method is tracking actual automobile costs.

The mileage rate for automobile use for computing medical or moving automobile expenses for July 1, 2008 - Dec. 31, 2008 will increase to 27 cents/mile.

The automobile use for charitable organizations is 14 cents/mile.

Remember that mileage rates are not the extent of your deductible expenses for the business use of your car. Remember to include parking and tolls under deductible expenses for the business use of you car.

Prior Year: Mileage Rates: January 1, 2008 - June 30, 2008

The 2008 optional standard mileage reimbursement rate used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes will be as of Jan. 1, 2008 for the use of a car (including vans, pickups or panel trucks): 50.5 cents per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS. The mileage rate for charitable miles is set by law.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

For more information, see Publication 463 - Travel, Entertainment, Gift, and Car Expenses.

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