Standard Mileage Rate Deductions
If you use a vehicle for business you may be eligible to deduct your auto expenses based on how many business miles you drove. In 2023 you can deduct $0.655 for each business mile you drove ($0.625 per mile in 2022). The standard mileage deduction is available for self-employed individuals and drivers who use their car for hire (taxi or Uber). It is also available for individuals using their vehicle for a job-related move, charity, or medical purposes, although these activities are deductible at different rates. If you want to take advantage of this deduction you'll need to track your miles. You should also know that there are a few circumstances that can prohibit you from deducting your miles, however you may still be able to deduct your vehicle expenses based on actual expenses. Refer to our diagrams to find out if the standard mileage deduction is right for you.