How to Track Business Mileage for Tax Deductions

What you need to track and why

The IRS lets you deduct mileage when you drive for business purposes — but only if you can prove it. You need to record the date, the number of miles driven, where you went, and the business reason for the trip. The IRS does not require a specific form, but it does require that your records be contemporaneous, meaning you write them down at or near the time you drive, not weeks later from memory.

Tracking mileage matters because the IRS audits mileage deductions more often than many other business expenses. A logbook or mileage app with timestamps is your proof that the miles actually happened. Without it, you cannot deduct the miles even if you genuinely drove them.

You can deduct mileage in two ways: using the standard mileage rate (a fixed amount per mile set by the IRS each year) or tracking your actual expenses like gas, maintenance, and depreciation. Most people find the standard rate simpler. For 2024, the standard rate varies by use — business mileage, medical mileage, and charitable mileage each have different rates. Check the IRS website for the current year's rates before you file.

Key Takeaways

• Record the date, miles driven, destination, and business purpose for every trip — write it down when you drive, not later.
• The IRS standard mileage rate changes yearly and differs by type of driving (business, medical, charitable), so confirm the current rate before filing.
• A mileage app with GPS timestamps is stronger proof than a handwritten log, but either one works if you keep it current.
• You cannot deduct commuting to your regular workplace, but you can deduct driving between multiple job sites or from home to a client meeting.
• Keep your mileage records for at least three years in case the IRS asks questions about your return.

What counts as deductible business mileage

Business mileage includes driving to meet clients, attend business meetings, pick up supplies, or travel between job sites. If you work from home and drive to a client's office, that drive counts. If you work at a fixed location and drive between that location and home, it does not — that is commuting, which is not deductible.

The distinction matters. Driving from your house to your office every day is commuting. Driving from your office to a client's location is business mileage. Driving from home directly to a client's location (skipping the office) is business mileage. Driving from home to a temporary work site counts as business mileage, but driving to your regular workplace does not, even if you work from home most days.

Medical mileage and charitable mileage have their own rates and rules. Medical mileage covers driving to doctor appointments, hospitals, or medical facilities for yourself or a dependent. Charitable mileage covers driving for a may have access to charitable organization. These are tracked the same way as business mileage but claimed separately on your tax return.

How to set up a mileage log

You have three main options: a handwritten logbook, a spreadsheet, or a mileage tracking app. All three work legally as long as you record the information at the time you drive. A handwritten logbook is the simplest — a small notebook you keep in your vehicle where you jot down each trip. A spreadsheet lets you organize the data and calculate totals automatically. A mileage app uses your phone's GPS to track routes and often syncs with tax software.

For a handwritten log or spreadsheet, record these four things for each trip: the date, the starting odometer reading (or miles driven), the destination, and the business purpose. You do not need to write a long explanation — "client meeting with Smith & Associates" or "supply pickup at vendor" is enough. At the end of the month or quarter, add up the business miles and keep the log with your tax records.

Mileage apps like MileIQ, Stride Health, or TripLog automatically log trips using GPS and let you categorize them as business, medical, or charitable. Many sync directly with tax software. The advantage is that the timestamp proves when you drove. The disadvantage is that you pay a subscription fee (usually $10 to $20 per month). If you drive frequently for business, an app often saves time and reduces the risk of forgetting to log a trip.

Odometer readings and proof

The IRS wants to see that your mileage claims are reasonable. One way to strengthen your records is to note your odometer reading at the start and end of each trip, or at least at the start and end of each day. This creates a paper trail showing that the miles you claimed actually match the distance your vehicle traveled.

You do not have to photograph your odometer every time, but doing so occasionally — especially at the start of the tax year and at major milestones — gives you backup proof. If you use a mileage app with GPS, the app itself creates a record of the route and distance, which serves the same purpose.

Keep receipts for gas, maintenance, repairs, and vehicle registration if you plan to deduct actual expenses instead of using the standard rate. These receipts support your deduction and show the IRS that you actually owned and operated the vehicle for business. Store them with your mileage log.

Mixing personal and business use

Most people use the same vehicle for both personal and business driving. That is fine — you only deduct the business portion. If you drive 12,000 miles in a year and 3,000 of those are business miles, you deduct 3,000 miles at the standard rate. The personal miles get no deduction.

This is why tracking matters. Without a log, the IRS will not believe your estimate of business versus personal miles. With a log, you have proof. If you use a mileage app, it automatically separates business trips from personal ones once you categorize them.

If you have a vehicle used exclusively for business, you can deduct all the miles. This is rare — most people have one vehicle they use for everything. If you do have a dedicated business vehicle, keep a log anyway. The IRS still expects contemporaneous records.

When to start tracking and how long to keep records

Start tracking mileage on January 1 of the tax year you want to deduct it. If you start tracking in March, you cannot go back and claim January and February miles — the IRS requires that records be made at or near the time of the trip. This is why many people set a phone reminder to log their first business trip of the year.

Keep your mileage records for at least three years after you file your tax return. The IRS has three years to audit most returns, though it can go back further if it suspects fraud. Storing your log or app data for three years is simple insurance. If you use a cloud-based app, the data stays backed up automatically.

If you file an extension, the three-year clock starts from the date you actually file, not from the original April deadline. Keep that in mind when deciding when to delete old records.

Frequently Asked Questions

Can I deduct mileage if I work from home?

Yes, but only for trips away from home. Driving from your home office to a client meeting counts as business mileage. Driving from home to a temporary work site counts. But if you have a regular workplace you return to, driving there from home is commuting and does not count, even if you also work from home some days.

What if I forget to log a trip the day it happens?

The IRS prefers contemporaneous records — logged at the time of the trip. If you forget one trip, you can reconstruct it later if you have supporting evidence like a calendar entry, email, or receipt from that date and location. But if you regularly reconstruct trips weeks later, the IRS may reject your entire mileage deduction. It is better to log as you go.

Do I need receipts for mileage deductions?

No. The mileage deduction uses the standard rate, so you do not need gas receipts. You only need your mileage log showing the date, miles, destination, and business purpose. Receipts matter if you choose to deduct actual expenses instead of the standard rate — then you need to track gas, maintenance, insurance, and depreciation.

Can I use the standard mileage rate and actual expenses in the same year?

No. You must choose one method for the entire year. Most people choose the standard rate because it is simpler and often yields a larger deduction. If you used actual expenses in a previous year, you can switch to the standard rate in a later year, but you cannot mix them in the same tax year.

What happens if the IRS audits my mileage?

The IRS will ask to see your mileage log. If you have a detailed, contemporaneous log, you are in good shape. If you have no log or a vague one, the IRS may disallow some or all of your mileage deduction. This is why tracking from the start of the year matters — it is your only proof that the miles happened.