Not Tracking your Miles is Costing your Business a lot of Money!
Not Tracking your Miles is Costing your Business a lot of Money!
If you’re self-employed or run a small business, tracking your business miles is one of the easiest ways to cut your tax bill. For 2025, the IRS standard mileage rate for business use is 70 cents per mile. That means every 100 miles you drive for business purposes gives you a $70 deduction off your taxable income.
Now imagine you drive 10,000 business miles in a year—that’s a $7,000 deduction you could claim, lowering both your income tax and self-employment tax. Without an accurate mileage log, you risk losing these valuable write-offs or being unable to defend them in an audit.
By keeping detailed mileage records—whether through an app, a logbook, or accounting software—you’ll make sure every client visit, supply run, and business meeting trip counts. The result? A smaller tax bill and more money left to reinvest in your business.
Bottom line: Tracking your business miles in 2025 isn’t just good practice—it’s a proven way to save big at tax time.
Why Tracking Your Business Miles in 2025 Will Save You Money at Tax Time
For self-employed professionals, freelancers, and small business owners, every dollar counts. One of the most overlooked but most valuable tax deductions you can claim is your business mileage. The IRS rewards you for the miles you drive for legitimate business purposes, and in 2025, that deduction is bigger than ever.
The 2025 IRS Mileage Rate for Business Use For tax year 2025, the IRS has set the standard mileage rate for business at 70 cents per mile. This means that every business mile you drive can reduce your taxable income by $0.70.
To put that into perspective:
1,000 miles = $700 deduction
5,000 miles = $3,500 deduction
10,000 miles = $7,000 deduction
That’s real money you could be saving at tax time—simply by keeping track of your miles.
What Counts as Business Miles?
Not every mile you drive qualifies, so it’s important to understand what the IRS considers a business expense. Eligible trips typically include:
Driving to meet with clients or customers
Trips to networking events, seminars, or conferences
Driving to pick up supplies, equipment, or inventory
Travel to a temporary work location
Trips between different business locations
Commuting from home to a permanent office usually does not qualify, unless you operate primarily from a home office.
Why Accurate Tracking Matters
The IRS requires proof for mileage deductions. If you don’t have an accurate mileage log, you risk:
Losing deductions you’re entitled to
Overpaying taxes unnecessarily
Facing penalties or rejected deductions during an audit
By tracking your miles correctly, you’ll have a clear record that protects your deduction and keeps you compliant with IRS rules.
How to Track Business Miles the Smart Way
There are two main methods for tracking mileage:
Manual Logbook – Writing down the date, destination, purpose, and miles driven. While simple, it can be time-consuming.
Mileage Tracking Apps – Automatic apps use GPS to log every trip and separate personal vs. business miles with a swipe. This is the easiest, most accurate way to make sure you capture every deductible mile.
The Bottom Line: Big Tax Savings in 2025
Tracking your business miles may seem like a small habit, but it adds up to thousands of dollars in potential tax savings. With the 2025 rate at 70 cents per mile, every trip for your business is worth documenting.
By staying consistent and organized, you’ll:
Lower your taxable income
Reduce your self-employment tax
Keep more cash in your business instead of sending it to the IRS
Don’t leave money on the table this year. Start tracking your business miles today and make tax season work in your favor.
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