If you’re self-employed and you rack up miles for work, 2025 brings a little good news. The IRS just nudged the business mileage rate up to 70 cents per mile, and honestly, in today’s economy, every penny counts. Sure, it might not sound like much when you’re thinking trip-by-trip. But stack those miles up over a year, chasing client meetings, supply runs, networking events — and that extra few cents can turn into a real chunk of change.
Self-employed drivers often overlook how powerful mileage deductions can be when it’s tax time. But trust me, whether you’re a freelance photographer, a dog walker, or a mobile notary hustling around town, the IRS mileage rate is one of the easiest ways to lower your tax bill legally.
In this guide, we’ll break down exactly what changed in 2025, how the new rate works for self-employed individuals, and a few smart ways to make sure you’re getting every single mile you’ve earned.
IRS Mileage Rate for Self-Employed in 2025: What’s New?
If you used to track your business miles in 2024, you might remember the IRS mileage rate was 67 cents per mile. For 2025, that number has climbed to 70 cents per mile for business use.
That’s a 3-cent jump, and while it might seem small when you look at a single trip across town, over the course of thousands of miles, it could make a surprising difference when you’re tallying up your tax deductions.
Here’s a quick snapshot of how the rates stack up:
| Type of Use | 2024 Mileage Rate | 2025 Mileage Rate |
|---|---|---|
| Business (self-employed) | 67 cents/mile | 70 cents/mile |
| Medical or Moving (Military) | 21 cents/mile | 21 cents/mile |
| Charitable Work | 14 cents/mile | 14 cents/mile |
Important to know:
- Only business miles are eligible for the 70 cents per mile rate.
- Medical/moving and charitable miles have different (lower) reimbursement rates and they haven’t changed for 2025.
- If you use your car for both personal and business trips, only your business mileage counts, so keeping good records is critical.
A lot of freelancers — whether they’re designers, consultants, or even those driving to meet clients about topics like finding cute cars for women in 2025, can seriously benefit from understanding this new rate. Every documented mile could mean paying less tax in April.
How to Claim Mileage Deductions the Right Way in 2025
When it comes time to actually claim your mileage on your taxes, you’ve got two options:
- Standard Mileage Rate or
- Actual Expense Method.
For most self-employed folks, especially freelancers, gig workers, and side hustlers, using the Standard Mileage Rate is by far the easier and cleaner way to go. And thanks to the bump to 70 cents per mile in 2025, it’s more valuable than ever.
Option 1: Standard Mileage Rate (Most Popular)
This is the simplest path. You track all your business miles driven during the year, multiply that number by 70 cents, and that’s your deductible amount.
Example: Let’s say you drove 8,000 business miles in 2025.
Your deduction would be:
8,000 miles × $0.70 = $5,600 tax deduction.
You don’t have to worry about gas receipts, oil changes, insurance splits, or complicated spreadsheets.
The IRS builds all those average costs into the standard mileage rate.
Pro Tip: If you love simple math and hate paperwork, this method is your best friend.
Option 2: Actual Expense Method (More Work)
If you go this route, you have to keep every single receipt for gas, repairs, insurance, lease payments, depreciation — basically, everything it costs you to own and operate your vehicle.
Then you calculate what percentage of your total driving was business-related.
Example: If you drove 10,000 total miles and 6,000 of them were for business (60%), you could deduct 60% of your total car expenses.
This method can sometimes get you a bigger deduction, but honestly?
Unless you’re driving a gas-guzzling truck or luxury car with crazy maintenance costs, most self-employed people save more time (and sanity) using the standard mileage rate.
Quick Tip for 2025 Filers
Once you pick the Standard Mileage Rate for a car the first year you use it for business, you generally have to stick with it for that vehicle if you lease it.
If you own the car, you could switch to actual expenses later, but it gets messy.
Pick your method wisely upfront.
Also, make sure you use mileage-tracking apps or a simple logbook. It’ll save you tons of headaches when April rolls around.
Speaking of smart tools, if you really want to stay on top of your numbers (especially if you’re comparing mileage savings versus fuel costs), check out this helpful advanced fuel mileage calculator.
It’s a solid way to double-check your actual fuel costs versus what the IRS assumes.
Keeping Proper Mileage Records (And Why It Matters More in 2025)
Let’s be real, nobody likes extra paperwork. But if you’re self-employed and planning to deduct your business mileage, keeping clean and organized records is non-negotiable.
The IRS isn’t just going to take your word for it. If you get audited (and audits are ticking up again in 2025), you’ll need proof that those miles you claimed were legit business trips, not just Sunday drives to brunch.
Here’s what your mileage log needs to cover:
- The date of each trip
- Where you started and where you went
- The purpose of the trip (client meeting, delivery, supply pickup, etc.)
- The number of miles driven
You don’t need to overcomplicate it — even a simple notebook works if you’re consistent. But these days, it’s smarter (and faster) to use a mileage-tracking app. Most apps automatically track your trips with GPS, so you’re not sitting in your car fumbling with a pen and paper.
Real-World Tip
If you live in a place like Texas, where you’re clocking long distances just to get across town, mileage tracking can be even more valuable.
Speaking of which, while you’re staying organized with your driving habits, make sure you’re up to date on Texas car seat laws too, especially if you’re ever using your vehicle for personal errands or family trips alongside business miles.
One simple mistake could get expensive fast.
IRS Audit Risk Is Higher for Self-Employed
Here’s a quick reality check:
The IRS knows that self-employed individuals are more likely to over-claim deductions, even if by accident. Mileage is one of the most commonly reviewed areas in audits.
If your record-keeping is sloppy, the IRS could deny your entire deduction, not just the missing miles.
Bottom line: Spend five minutes a week logging your trips properly. It could save you thousands if questions ever come up.
Common Mistakes to Avoid When Claiming Mileage in 2025
Filing mileage deductions might sound straightforward, but when you’re self-employed, even small mistakes can invite trouble, especially if the IRS takes a closer look. Many freelancers, consultants, and independent contractors fall into the same traps every year, either missing out on savings or putting themselves at unnecessary risk. Here’s what you need to watch out for as you prepare your 2025 taxes.
One of the most common errors is failing to properly separate business and personal driving. Even if the majority of your trips are work-related, it’s rare for a vehicle to be used exclusively for business unless it’s something like a branded service van. If you’re using your car for both business and personal needs — like grabbing groceries after a client meeting, it’s critical to log only the miles tied directly to business activities. Mixing the two without clear records can cause major issues if you’re audited.
Another mistake that trips up self-employed drivers is not logging trips consistently throughout the year. It’s tempting to think you’ll remember your mileage when tax time rolls around, but realistically, memories fade and details get fuzzy. The IRS expects contemporaneous records — meaning you need to document trips as they happen, not months later. Regular weekly updates to your mileage log (or using an automatic tracking app) will save you huge headaches down the line.
Documentation doesn’t stop at mileage logs. You’ll also need to be able to prove ownership or lease of the vehicle you’re claiming expenses on. Keeping your registration, lease paperwork, and insurance documents organized in a digital folder is a smart move. If you can’t easily show that you own or lease the vehicle, your mileage deductions could be denied entirely.
Finally, don’t overlook the small trips. Many self-employed people only focus on major drives, like traveling to another city for a client meeting, but short errands matter too. Picking up office supplies, visiting the post office, and quick trips to consult with a client — they all add up over time. Just like finding a great affordable AWD sports car under 30K can save you thousands compared to a luxury model, maximizing every small deduction builds real financial wins over the course of the year.
Quick Checklist to Avoid Common Mileage Deduction Mistakes:
- Track every business trip regularly, not just the big ones
- Maintain a clear separation between personal and business driving
- Store proof of vehicle ownership or lease agreements
- Use technology like apps to automate and backup your logs
- Review your mileage records at least once a quarter for accuracy
By staying organized and careful with your records, you’ll not only maximize your deductions but also stay audit-proof if the IRS ever comes knocking. When it comes to mileage tracking, a little effort every week can save you a lot of money and stress later on.
Final Thoughts: Why Mileage Deductions Are a Self-Employed Driver’s Best Friend
For self-employed professionals, every dollar matters, and the IRS mileage deduction remains one of the most valuable tax-saving tools available. In 2025, with the business mileage rate increasing to 70 cents per mile, there’s even more incentive to track your driving carefully and claim what you’re rightfully owed. It’s an opportunity that, if used wisely, can lead to significant savings over the course of the year.
However, as simple as it sounds, mileage deductions come with rules that need respect. Sloppy records, blurred lines between personal and business use, or missing documentation can turn what should be an easy tax benefit into a costly headache. That’s why building good habits early, like using a reliable mileage tracking app, keeping vehicle records organized, and logging trips consistently, is critical for anyone relying on their car to build their business.
Mileage deductions aren’t just a minor bonus; they can be the difference between a high tax bill and keeping more of your hard-earned money in your own pocket. Whether you’re delivering goods across town, meeting with clients, or scouting locations for your next gig, every mile tells a story of your hard work, and the IRS gives you a way to get credit for it.
By staying organized, avoiding common mistakes, and understanding how the new 2025 mileage rate works, you can turn those everyday drives into smart, powerful savings. And in a world where expenses are only climbing, that’s the kind of win that every self-employed driver deserves.
