Tax Deductible Car Miles - IRS Standard Mileage Rates

You can deduct your vehicle expenses, either actual expenses or the standard rate per mile driven, if you are using your car for qualified business, medical, or charitable purposes.

The standard tax deductible mileage rates for 2011 (and for earlier years) are listed below. If you itemize deductions, you can deduct these amounts from your taxable income.

A Note on Business Miles: Normal commuting is not deductible. This includes driving from your home to your normal place of work and back. You may deduct business mileage only if you are traveling to and from a temporary work location, to meet with a client, to a conference, etc.

Current Year: 2011 Standard Deductible Mileage Rates: January 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

Current Year: 2011 Standard Deductible Mileage Rates: July 1, 2011 - December 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 generally deduct the costs of tolls and parking while using your vehicle for one of the above purposes, as long as you have not claimed vehicle depreciation.

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.

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 here.

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

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

The standard tax deductible IRS mileage rates for the use of a car, van, pickup truck, 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

Previous 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.

Previous 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.