Honestly, keeping track of what the IRS wants is a full-time job in itself. If you're driving for work, you've probably heard that the 2024 business mileage rate went up. It did. Specifically, the rate jumped to 67 cents per mile. That’s a 1.5-cent increase from the 65.5 cents we saw in 2023.
It sounds small. But if you’re a real estate agent logging 15,000 miles a year, that’s an extra $225 in your pocket. Small wins matter.
The IRS doesn't just pull these numbers out of a hat. They base the business rate on an annual study of the fixed and variable costs of operating an automobile—things like gas, sure, but also insurance, tires, and the soul-crushing reality of depreciation. Interestingly, while the business rate went up, the medical and moving rates actually dropped by a penny.
Why the 67 Cents per Mile Matters Right Now
We’re living in a weird economic moment. Gas prices fluctuated wildly throughout late 2023 and early 2024, yet the cost of actually buying a car stayed stubbornly high. This is why the IRS bumped the rate. They aren't just looking at the pump; they're looking at the fact that your 2019 SUV is more expensive to maintain than it was two years ago.
For the self-employed, this is a "straight-line" deduction. You take your total business miles, multiply by 0.67, and boom—that’s your deduction. No need to keep a shoebox full of crumpled gas receipts. Well, mostly. You still need a rock-solid mileage log.
The Breakdown for 2024
- Business Use: 67 cents per mile.
- Medical/Moving (Military only): 21 cents per mile.
- Charitable Service: 14 cents per mile (this one is set by statute and almost never changes).
The "Actual Expenses" Trap
Most people default to the standard mileage rate because it's easy. However, there’s another way: the Actual Expenses method. This is where you track everything. Every oil change, every new set of wipers, every insurance premium, and every gallon of 87-octane.
Then, you figure out the percentage of time you used the car for business. If you spent $10,000 on your car this year and used it 60% for work, you get a $6,000 deduction.
Here’s the catch. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for business use. If you start with "Actual Expenses," you are stuck with it for the life of that vehicle. No switching back. It’s a bit of a "tax trap" that catches people who buy a luxury vehicle and realize later that the paperwork for actual expenses is a nightmare.
What Actually Counts as a Business Mile?
This is where the IRS gets picky. You can’t just count every time you turn the key.
Your commute? Not deductible. Driving from your house to your regular office is considered a personal expense, regardless of how much work you do on the way.
But, if you’re driving from your office to a client meeting? Deductible.
Driving from one job site to a second job site? Deductible.
Driving to a temporary work location (somewhere you expect to work for less than a year)? Usually deductible.
One nuance people miss is the "Home Office" exception. If your home is your principal place of business, then the drive from your front door to a client's office is deductible. It transforms your "commute" into a "business trip." This is a huge perk for freelancers and consultants.
Common Misconceptions
- "I can't claim miles in an EV." Wrong. The 67-cent rate applies to electric, hybrid, and gas vehicles alike.
- "I can deduct my car wrap." Sorta. You can deduct the cost of the advertisement itself, but "moving billboard" status doesn't suddenly make your grocery run a business trip.
- "The IRS won't check." They might. And if they do, "I remember driving a lot" isn't a legal document.
How to Protect Your Deduction
If you're going to claim the 2024 business mileage rate, you need a log. The IRS requires you to document the date, the mileage, the destination, and the business purpose.
🔗 Read more: AT\&T Notice of Dispute: How to Actually Fight a Bill or Breach and Win
You can use a paper log. You can use an app like MileIQ or Hurdlr. Just don't try to recreate it from your Google Maps history three days before your tax appointment. It’s obvious, and it’s a red flag.
Also, keep in mind that you can still deduct parking fees and tolls separately. Those aren't included in the 67-cent rate. If you paid $20 to park at a convention, that’s an additional deduction on top of the mileage.
Actionable Next Steps
- Audit your current log: If you haven't recorded a trip since March, go through your calendar and reconstruct it now while your memory is fresh.
- Run the math: If you bought a heavy SUV (over 6,000 lbs) in 2024, talk to a pro about Section 179 depreciation instead of the mileage rate. It might be a bigger win.
- Update your reimbursement policy: If you run a small business, make sure you're paying your team the full 67 cents. Paying less can lead to morale issues or even legal headaches in states like California.
- Set an odometer reminder: Take a photo of your dashboard on December 31st. It’s the easiest way to prove your total miles for the year.