United States: mileage, vehicle expenses and tax records
Mileage or actual expenses
How the local rules work
Eligible drivers may compare standard mileage with actual vehicle expenses. Prior choices, ownership and leasing rules can limit which method you can use.
What to keep
Keep business miles, trip purposes and dates, receipts, and beginning and ending odometer readings. Total mileage helps explain business versus personal use.
What the odometer message means
The app needs total vehicle distance, including personal driving, to estimate business use. Enter beginning and ending odometer readings for the same vehicle and reporting period. Missing total distance means the percentage is incomplete; it does not erase your recorded business trips.
80% business · 20% personal
12,000 ÷ 15,000 × 100 = 80%. Use miles or kilometres consistently. This is a usage ratio, not automatic permission to deduct 80% of every cost.
Avoid this mistake
Standard mileage already covers vehicle operating costs such as fuel and repairs. Do not deduct those costs a second time. Eligible business tolls and parking can be separate. A deduction reduces taxable income; it is not the amount refunded.
Prepare your records in Free Mile Tracker
- Select your country and the correct reporting period.
- Review each trip and distinguish business from personal driving.
- Add dated odometer readings and keep supporting expense documents.
- Export your records and compare them with platform statements before filing.
Compare mileage with actual expenses
| Method | How the estimate works |
|---|---|
| Standard mileage | Eligible business miles × the IRS business rate for the year. |
| Actual expenses | Eligible business-use share of qualifying vehicle costs, with applicable limits and depreciation rules. |
You can estimate standard mileage from accurate business miles without first calculating a business-use percentage. Total annual mileage still supports your records and is particularly useful for actual expenses. Personal driving and ordinary commuting are generally not deductible business miles.
For an actual-cost illustration, 80% of $10,000 in eligible allocable costs is $8,000 before applicable limits. This is a deduction estimate, not $8,000 of tax savings.
IRS Publication 463: eligibility, commuting and records
Official guidance
Source checked October 8, 2026. Confirm the applicable tax year on the official site before filing.