The Business Mileage Rate 2024 matters because every mile you drive for business is worth money at tax time. Many self-employed people leave that money on the table simply because they do not track it. The math is simple once you know the rate, but the discipline to log every trip is what most people miss.
The IRS standard business mileage rate for 2024 is 67 cents per mile – an increase of 1.5 cents from the 65.5 cents rate in 2023. This rate applies to miles driven for business purposes by self-employed individuals, sole proprietors, and employees who use a personal vehicle for work (when not reimbursed by an employer). For a freelancer who drives 10,000 business miles in 2024, that’s a $6,700 deduction off taxable income.
2024 IRS Mileage Rates – All Categories
| Purpose | 2024 Rate (per mile) | 2023 Rate | Change | Who Uses It |
|---|---|---|---|---|
| Business | 67 cents | 65.5 cents | +1.5 cents | Self-employed, sole proprietors, business owners |
| Medical | 21 cents | 22 cents | -1 cent | Taxpayers with qualifying medical travel |
| Charitable | 14 cents | 14 cents | No change | Volunteer driving for qualified charities |
| Moving (military only) | 21 cents | 22 cents | -1 cent | Active duty military relocation orders only |
Note: The charitable rate is set by statute and rarely changes. The business, medical, and moving rates are adjusted annually by the IRS based on fuel costs and vehicle operating expenses.
How the IRS Sets the Standard Mileage Rate
The IRS contracts an annual study of the fixed and variable costs of operating a vehicle – including fuel, insurance, depreciation, maintenance, and registration fees. The standard mileage rate is designed to approximate the average per-mile cost of owning and operating a typical passenger vehicle in the US.
When gas prices surge (as they did in 2022, prompting a mid-year rate increase to 62.5 cents), the rate adjusts upward. When fuel stabilizes or vehicle costs moderate, the rate may hold steady or dip slightly – as it did for medical and moving purposes in 2024.
Standard Mileage Method vs. Actual Expense Method
| Factor | Standard Mileage Method | Actual Expense Method |
|---|---|---|
| How it works | Multiply business miles by IRS rate (67 cents in 2024) | Track every real expense: fuel, insurance, repairs, depreciation |
| Record keeping | Mileage log required (date, destination, purpose, miles) | All receipts and records for every vehicle expense |
| Simplicity | Simple – one calculation | Complex – requires detailed records all year |
| Best when… | Vehicle is used moderately; low actual operating costs | Vehicle is expensive to operate; high fuel/maintenance costs |
| Depreciation | Built into the rate | Separate depreciation deduction calculated (Section 179 or MACRS) |
| Flexibility | Must choose method in first year of business use | Can sometimes switch; consult a tax advisor |
| Typical deduction size | Consistent and predictable | Can be higher for expensive or heavily used vehicles |
For most small business owners and self-employed individuals with a standard passenger car, the standard mileage method is simpler and yields a competitive deduction without the burden of tracking every fuel receipt.
Who Can Use the Standard Mileage Rate?
- Self-employed individuals and sole proprietors (report on Schedule C)
- Partners in a partnership using their own vehicle for business
- S-corp shareholders/employees driving personally-owned vehicles for the business
- Employees who use a personal vehicle for work and are NOT reimbursed by their employer (report on Form 2106 – but note: this deduction was suspended for most employees 2018-2025 under TCJA)
Important: If you use a company-owned or leased vehicle, the standard mileage rate does not apply. Actual expenses or lease inclusion amounts are used instead.
What Qualifies as a Business Mile?
| Qualifies as Business Miles | Does NOT Qualify |
|---|---|
| Driving to a client meeting | Commuting from home to your regular office |
| Travel between two work locations | Driving to the gym before work |
| Going to a bank or post office for business purposes | Personal errands mixed with a business stop |
| Site visits, job inspections, deliveries | Driving to pick up lunch for yourself |
| Travel to temporary work sites | Commuting even if you work from home some days |
| Business-related conference or seminar travel | Vacation with occasional business calls |
The home-to-office commute is the most common mistake. Even if your ‘office’ is across town and you hate the drive, it’s personal commuting in the IRS’s eyes. However, if you work from a home office and drive to a client site, that full trip may qualify as business mileage.
How to Track Mileage Properly
The IRS requires contemporaneous records – meaning you log trips as they happen, not from memory at year end. What a valid mileage log needs:
You don’t need a paper log – apps are fully accepted and much easier to use:
| App | Key Feature | Cost |
|---|---|---|
| MileIQ | Automatic background tracking; swipe to classify trips | Free (limited) / $5.99/month |
| Everlance | Auto-tracking + expense reports; IRS-compliant exports | Free (limited) / $8/month |
| Stride | Free mileage and expense tracking for gig workers | Free |
| TripLog | Fleet-grade tracking with team features | Free limited / $5.99/month |
| Hurdlr | Mileage + income/expense tracking for freelancers | Free / $8.34/month |
Mileage Rate History: 2019-2024
| Year | Business Rate | Medical / Moving | Charitable | Notes |
|---|---|---|---|---|
| 2024 | 67 cents | 21 cents | 14 cents | Highest business rate to date |
| 2023 | 65.5 cents | 22 cents | 14 cents | |
| 2022 (Jan-Jun) | 58.5 cents | 18 cents | 14 cents | Mid-year adjustment due to fuel prices |
| 2022 (Jul-Dec) | 62.5 cents | 22 cents | 14 cents | Rare mid-year increase |
| 2021 | 56 cents | 16 cents | 14 cents | |
| 2020 | 57.5 cents | 17 cents | 14 cents | |
| 2019 | 58 cents | 20 cents | 14 cents |
Common Mistakes That Cost Mileage Deductions
- No mileage log – the IRS can disallow the entire deduction without contemporaneous records
- Claiming commuting miles as business miles – this is audited frequently
- Forgetting to record odometer reading on January 1 and December 31 – needed to calculate total business use percentage
- Mixing business and personal trips without separating them in the log
- Claiming 100% business use on a vehicle that’s clearly also used personally
- Using the standard mileage rate after taking Section 179 depreciation on the vehicle in the first year – you can’t do both
Mileage is one of the most commonly missed deductions for self-employed people – and one of the easiest to capture with the right habit. Download a tracking app, let it run in the background, and classify your trips as you go. At 67 cents per mile, a few thousand annual business miles adds up to real money at tax time.
