Adjust this value if the IRS updates the 2025 rate (Defaults to late 2024 rate).
These are deductible in addition to the mileage rate.
Estimated Tax Deduction
$0.00
function calculateTaxDeduction() {
// Get input values using var
var milesInput = document.getElementById("totalMiles").value;
var rateInput = document.getElementById("mileageRate").value;
var tollsInput = document.getElementById("parkingTolls").value;
// Parse values to floats
var miles = parseFloat(milesInput);
var rateCents = parseFloat(rateInput);
var tolls = parseFloat(tollsInput);
// Validation
if (isNaN(miles) || miles < 0) {
alert("Please enter a valid number for Total Business Miles.");
return;
}
if (isNaN(rateCents) || rateCents < 0) {
alert("Please enter a valid Standard Mileage Rate.");
return;
}
if (isNaN(tolls)) {
tolls = 0;
}
// Calculation Logic: (Miles * (Rate / 100)) + Tolls
var mileageDeduction = miles * (rateCents / 100);
var totalDeduction = mileageDeduction + tolls;
// Formatting currency
var formattedTotal = totalDeduction.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
var formattedMileageOnly = mileageDeduction.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
var formattedTolls = tolls.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
// Update UI
var resultBox = document.getElementById("resultDisplay");
var finalValue = document.getElementById("finalDeduction");
var breakdown = document.getElementById("calculationBreakdown");
finalValue.innerHTML = formattedTotal;
breakdown.innerHTML = "Mileage: " + formattedMileageOnly + " + Tolls/Parking: " + formattedTolls;
resultBox.style.display = "block";
}
Understanding the 2025 Business Mileage Deduction
For self-employed individuals, freelancers, and business owners, vehicle expenses can represent a significant tax write-off. The IRS Standard Mileage Rate provides a simplified method for calculating these deductible costs without the need to track every single receipt for gas, insurance, and repairs. Our 2025 Business Mileage Rate Calculator helps you estimate your potential tax savings based on the miles you drive for business purposes.
How the Calculation Works
The Standard Mileage Deduction is calculated by multiplying your total business miles by the specific rate set by the IRS for that tax year. While the 2024 rate was set at 67 cents per mile, the IRS typically announces adjustments for the upcoming tax year in late December. This calculator allows you to adjust the "Cents per Mile" field to match the official 2025 announcement or to project different scenarios.
The formula used is:
(Business Miles × Standard Rate) + Parking & Tolls = Total Deduction
What Counts as Business Mileage?
To claim this deduction, the miles must be driven specifically for business purposes. Commuting from your home to your regular place of work is generally not deductible. However, the following trips usually qualify:
Driving from your office to a client's location.
Driving from your home to a temporary work location.
Driving between two different jobs.
Running business-related errands (e.g., to the bank or office supply store).
Don't Forget Parking and Tolls
Many taxpayers overlook that parking fees and tolls paid during business trips are deductible in addition to the standard mileage rate. These are considered separate allocable expenses. Our calculator includes a specific field for these costs to ensure you see the full picture of your potential deduction.
Standard Mileage Rate vs. Actual Expenses
You generally have the choice between using the Standard Mileage Rate or the Actual Expenses method (tracking gas, oil, repairs, insurance, depreciation, etc.). The Standard Mileage Rate is popular because it requires less record-keeping—you primarily need a compliant mileage log showing dates, miles, and business purposes. If you choose the Standard Mileage Rate for the first year you use a car for business, you can switch to the Actual Expenses method in later years. However, if you start with Actual Expenses, you usually cannot switch back to the Standard Mileage Rate for that specific vehicle.