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Mileage Deduction for 1099 & Sole Props

Driving 12,000 business miles at the 2025 IRS standard rate of 70 cents/mile yields a $8,400 deduction. That is $700 per 1,000 miles — often worth more than actual vehicle expenses for many self-employed drivers.

Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Deduction = Business Miles x Standard Mileage Rate. For 2025 the IRS set the rate at 70 cents per mile (up from 67 cents in 2024); the rate is inflation-adjusted annually. You may instead deduct actual vehicle expenses, but the standard rate is simpler and usually larger for high-mileage drivers. You cannot use the standard rate if you previously claimed accelerated depreciation on the vehicle.

What Should You Do?

Scenario 1: a rideshare driver doing 25,000 miles deducts $17,500. Scenario 2: a consultant driving 6,000 miles deducts $4,200. Scenario 3: compare to actual costs — if you drive an old paid-off car, the standard rate almost always wins.

Frequently Asked Questions

What counts as business miles?

Miles driven for work — client visits, deliveries, business errands. Commuting to a regular workplace does not count.

Standard rate vs actual expenses?

Standard is simpler; actual (gas, maintenance, depreciation) can win for low-mileage expensive vehicles. Pick one method and keep a log.

Is the rate the same every year?

No — the IRS sets it annually. Always verify the current year's rate at IRS.gov before filing.

Authoritative References

IRS — Standard Mileage Rates — Current and historical IRS mileage rates (2025 = 70c).
IRS — Publication 463 (Travel) — Vehicle and travel expense rules for the self-employed.