Mileage Deductions 101: What Counts, What Doesn’t, and How to Track It (Without Wanting to Cry)

Let’s talk about one of the easiest tax write-offs that creative entrepreneurs frequently overlook: mileage. If you’ve ever made a trip to the post office to drop off orders, driven to a vendor event across town, or attended a craft fair or workshop, there’s a good chance you could’ve written off those miles. And yet… most of us don’t, because we’re not exactly sure what counts or how to track it properly. So let’s fix that!

Here’s your plain-English guide to what counts as business mileage (and what doesn’t), how to calculate it, and how to make sure you’re tracking it properly—all without spiraling into spreadsheet-induced panic. Spoiler alert: I made a free Mileage Tracker for you, and it does the math. You’re welcome! Download it below 👇

So, What Actually Qualifies as “Business Mileage”?

The IRS says you can deduct miles that are “ordinary and necessary” for your business. Translation? If the drive is directly related to running or growing your biz, it likely counts. Here are a few everyday examples of deductible trips:

Driving to meet clients, vendors, or business partners
Traveling between multiple job sites or studios in the same day
Quick runs to the post office, bank, or even Target—for business supplies, not throw pillows
Attending conferences, seminars, or networking events
Driving to craft fairs, farmer’s markets, etc. where you are selling

The general rule is: if the trip is for business and isn’t something you’d normally do just as a human (like commuting to your 9-to-5), you’re probably safe to deduct it. But don’t worry—your tracker will help keep it all straight. Grab my free one and plug in those miles before you forget.

This is the best resource straight from the horse’s mouth (the horse being the IRS) about business use of your car. I also highly recommend reading IRS Publication 430, which covers not just this topic but also travel expenses for your biz in general.

What Doesn’t Count for the Mileage Deduction?

Just because you’re working that day doesn’t mean every drive is deductible. The IRS doesn’t care if you’re also grabbing printer ink or sending an email while you’re out. Here’s what’s usually off-limits:

Your regular commute from home to your main job site or office (even if your “office” is your own shop or studio)
Personal errands or detours, even if they happen between business tasks
Any drive that isn’t directly tied to your business operations

So unfortunately, that morning coffee run or afternoon Target therapy session isn’t going on the books—unless you’re also picking up branded packaging or dropping off customer orders along the way. Again, the IRS provides a handy little chart for you inside Publication 430 if you have more questions!

The Two Ways to Deduct Your Vehicle Use: Standard Mileage vs. Actual Expenses

Ok, you get what miles you can deduct…now how do you actually calculate the deduction?

When it comes to how you calculate your deduction, you’ve got two main options—and one is way easier for most of us. My Mileage Tracker uses the Standard Mileage Rate, because it’s simple, quick, and doesn’t require keeping a folder full of gas receipts.

Option 1: Standard Mileage Rate
This method is super straightforward. You multiply your total business miles by the IRS mileage rate for the year (it’s 70 cents per mile in 2025). That’s it. No need to track gas, oil changes, or insurance. Just miles driven for business purposes. PS: You can find the standard rate for current & past years here.

Option 2: Actual Expense Method
With this one, you track all your car-related expenses—fuel, maintenance, insurance, depreciation, the works. Then you calculate the percentage of your vehicle use that was business-related and deduct that amount. It’s detailed, requires receipts, and can be kind of a pain.

Whichever method you choose, you’ve got to stick with it—especially if it’s the first year you’re using that car for your biz.

What the IRS Wants You to Track to Claim the Mileage Deduction (Yes, You Need Records)

Even if you’re using the standard method, the IRS expects you to keep legit documentation of your business mileage. No ballparking figures allowed. Your records need to include:

The date of each trip
Your starting point and destination
The business purpose of the trip (be specific!)
Your starting and ending odometer readings
The total miles driven for each trip

This is the example the IRS provides for properly tracking mileage:

The free mileage tracker you can download & use inside Google Sheets tracks all these IRS-required things AND keeps a running tally of your standard mileage deduction based on the current year’s rate. I suggest downloading, keeping it bookmarked on your phone, and plugging in your miles as you go.

keep scrolling down to opt in for this free business mileage tracker!

Tips to Maximize Your Mileage Deduction

Want to make sure you’re not leaving money on the table? Here’s how to get the most out of your mileage deduction:

Log your trips consistently—daily or weekly is ideal, before you forget why you even drove there (like I said — keep the tracker open or bookmarked on your phone for easy access!)
Be crystal clear about the business reason for each trip on your documentation (write “deliver Etsy orders” not “ran errands”)
Keep your personal and business driving separate. When in doubt, just don’t deduct it.
Save any supporting documentation (like receipts), especially if you’re using the actual expense method

And while you’re at it, make sure the rest of your business expenses are being tracked properly too. If you’re tired of trying to keep it all straight, my Seller Spreadsheets are designed specifically for creatives, makers, and ecomm sellers who need a simple, sanity-saving system. Plus they come with step-by-step instructions to walk you through it.

Don’t Sleep on This Deduction!

Mileage might not seem like a huge deal, but it can add up to hundreds of dollars in tax savings. You’re already driving all around town for your business; you might as well get credit for it.

Download my free Mileage Tracker now and start logging those miles. And if you’re ready to finally feel confident and in control of your numbers (without an accounting degree), check out my full collection of Seller Spreadsheets. They’re made for folks like you—creative, passionate, and ready to get their financial you-know-what together.

No shame. No jargon. Just plain-English tools that help you feel organized, empowered, and actually excited to update your books. Yes, really.