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Vehicle and Mileage Deductions Every Small Business Owner Should Know

Do you use your car for business purposes? You can deduct either the standard mileage rate or

your actual vehicle expenses (e.g., fuel, repairs, insurance).

For 2025, the IRS mileage rate is estimated to stay near 65.5 cents per mile.

Examples of deductible trips:

  • Driving to meet clients or attend events
  • Delivering products to customers
  • Traveling to a business workshop or conference

Tip: Use an app like MileIQ or QuickBooks Online to automatically track your mileage and keep

detailed trip logs. Proper tracking will help reduce your tax burden.

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