The standard mileage rate
The IRS optional standard mileage rate is 70 cents per mile for 2025 (business use). It covers fuel, depreciation, insurance and maintenance in one number, which makes record-keeping simple — but you must track business miles contemporaneously, not from memory.
What is separately reimbursable
- Parking and tolls on business trips (in addition to mileage)
- Lodging and airfare at actual cost with receipts
- Meals at 50% deductible for the business, fully reimbursable to you
- Client entertainment, with the business purpose documented
Record-keeping that survives an audit
Log date, destination, business purpose and miles for every trip. A calendar entry plus odometer readings is enough. The IRS disallows estimates that cannot be corroborated, and a year of reconstructed mileage is the classic audit failure.
Employer reimbursements
Accountable plans — where expenses are substantiated and excess advances returned — are excluded from employee income. Non-accountable plans turn reimbursements into taxable wages, which costs both sides.
Frequently Asked Questions
What is the 2025 mileage rate?
70 cents per mile for business use; medical and charity rates differ.
Can I claim commuting?
No — commuting between home and a regular workplace is not deductible.
Do I need receipts for mileage?
Keep a log of date, purpose and miles; fuel receipts are not required under the standard rate.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
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