Vehicle Expense Deduction

Choose and apply the right method for deducting business vehicle expenses: standard mileage rate or actual expenses.

Two methods — pick one per vehicle

Standard mileage rate

Multiply your business miles by the IRS standard rate. Simple.

2024 rate: 67 cents per mile (this changes annually — check IRS.gov for the current year).

What the rate includes: gas, oil, repairs, tires, insurance, registration, depreciation. You do NOT deduct these separately when using the standard mileage rate — they're baked into the 67¢.

What you CAN add on top: parking fees and tolls for business trips (deducted on Schedule C Line 24a Travel), and interest on a car loan (Line 16b).