Get the Most from Your 2022 Mileage Tax Deduction

Do you drive for your job or business? Then you might be eligible for a mileage deduction. Here is an easy-to-understand guide to the IRS standard mileage deduction. Happy filing!

In 2022, you can deduct 58.5 cents per mile driven for business uses.

If you drive a lot, either for your business or for an employer who doesn’t reimburse your expenses, keeping careful track of your miles will give you the biggest tax deduction.

1. What Kind of Driving is Deductible?

If you drive for business in some way and your employer does not reimburse you for gas, those miles are eligible for the deduction. Common jobs which accrue deductible miles include realtors, sales, and contractors.

In addition, miles logged for charitable organizations and medical or moving expenses can also be deducted.

Here’s the full list:

  • Business Use: $0.585/mile
  • Medical, Moving Purposes (active duty only): $0.18/mile
  • Charitable Organizations: $0.14/mile

2. Is it Worth My Time to Log the Miles and File the Deduction?

To be able to take advantage of this deduction, your unreimbursed expenses must equal more than 2% of your salary.

If you have to drive three miles down the road several times a week to go from the main office to the salesroom, it’s not necessary to start logging your miles.

If, however, you spend a great deal of each day in the car, you could be missing out on some major tax savings if you do not deduct your miles.

3. What is the Rate for the Mileage Deduction?

For miles driven in 2020, the business mileage rate is 58.5¢ per mile. This is the most commonly used measure since a large number of Americans are either self-employed or work for a small business where their miles can be deducted.

The rate for mileage accrued for charitable organizations is 14¢ per mile. The rate for medical or moving expenses (for active duty members of the Armed Forces who qualify only) is 18¢ per mile.

Here’s a little more info on this from the IRS.

4. What Kind of Driving is not Eligible for the Deduction?

  1. You are not entitled to the deduction for miles driven during your commute
  2. You cannot be using more than five cars at once to qualify, and your car cannot be for hire (in other words, you cannot deduct your mileage if you are running a taxi company)
  3. Finally, if this is the first year you have accrued unreimbursed miles for business, you must take the standard mileage deduction, rather than the Actual Expenses Deduction

5. What Is the Actual Expenses Deduction?

If you believe the cost of using the car will add up to more than the $0.585 per mile the standard mileage deduction will provide you, it might make sense to deduct your actual expenses.

Vehicle expenses you can deduct are:

  • Gas
  • Insurance
  • Maintenance (including tires)
  • Registration Fees
  • Car loan interest (but not principal payments!)
  • Lease payments
  • Garage rent and parking
  • Tolls
  • Depreciation

Do not forget, however, that parking expenses are still deductible even if you choose the standard deduction.

This option is not for everyone, but if you’re organized and diligent, you might find that this is the better option for you.

Standard Mileage Rate vs. Actual Vehicle Expenses

Here’s a little example for comparison.

Let’s say you drive a total of 12,000 miles in a year, and thanks to Hurdlr or another tracking method, you know 3,000 of those miles were for business.

If you go with the standard mileage deduction rate, your work is super simple:

3,000 x $0.585 = a deduction of $1,755

If you want to utilize actual vehicle expenses to calculate your deduction, you’ll need to diligently track all vehicle-related expenses for the year. For simplicity’s sake, we’ll say it’s $10,000 for the year.

You can only deduct the percentage of vehicle expenses which are actually attributable to your driving for work.

In this example, your business mileage was 25% of your total miles driven, which means you can deduct 25% of the actual vehicle expenses, or $2,500.

  • Standard rate: $1,755 deduction
  • Actual expenses rate: $2,500 deduction

In the above example, using the actual expenses gives you a more favorable deduction.

However, if you only spent $6,500 on vehicle costs, your deduction would drop to $1,655, which is $100 less than your standard deduction

There are a few rules of thumb that you can use in a general way to help you decide.

  • If you drive an older, less expensive vehicle, you’re probably better off using the standard rate.
  • If you experience very low operating expenses for your car, the standard rate is still probably best.

But a good plan might be to use the standard mileage rate your first year with a vehicle and then reevaluate from year to year by doing the calculations.

If you use the actual expenses method the first year, you’re not allowed to switch back to the standard deduction in the following years.

Here’s more about the rules for deducting mileage expenses from H&R Block.

6. Are There Any Tools Which Can Help Me Log My Miles?

For years, the only way to keep track of miles for this deduction was with pen and paper.

Now, there are several programs out there that can log your miles automatically through your GPS.

Check out Mileage Logger or Hurdlr.

Hurdlr Mileage Tracker App Review

A great way to track work-related mileage is through Hurdlr. It’s an app designed to make life easier for freelancers, independent contractors, and other professions that need help tracking income, expenses, and mileage.

By using Hurdlr, you’ll also be able to estimate your tax burden and track tax deductions throughout the year.

Hurdlr users have been finding over $5,600 in tax deductions on average.

How Does Hurdlr Work?

Ideally, you’ll use one specific bank account for your business expenses and income. Once you’ve linked your account, Hurdlr is able to track income and expenses easily.

You can also link Hurdlr to services like PayPal, Square, Stripe, Freshbooks, and others to stay completely synced.

There’s a mileage tracking function that runs in the background and tracks mileage automatically. It can even integrate with Uber’s app. There’s no need to manually track your mileage anymore.

Hurdlr tracks everything efficiently and automatically. It keeps track of deductions, reimbursements, and so much more. You have access to tons of financial reports with Hurdlr too.

You will always be organized and ready when it’s time to tackle your taxes with their Tax Estimator.

Who can Benefit from Using Hurdlr?

Hurdlr is perfect for people with side hustles or those who are self-employed. It’s an easy and inexpensive way for people to track mileage along with their income and expenses.

Hurdlr is a great option for:

  • Uber drivers and Lyft drivers
  • Freelancers and entrepreneurs
  • Independent contractors
  • Real estate agents
  • Drivers
  • DoorDash and Instacart couriers
  • Airbnb, HomeAway, and VRBO hosts

Hurdlr can integrate with many of the other tools and apps used by people who are self-employed. Real estate agents can use it to track commissions.

It provides enough accounting and finance tracking functions without overcomplicating anything.

Learn more about tracking your mileage with Hurdlr here.

How Much Does Hurdlr Cost?

Hurdlr offers three levels of service and pricing for customers:

Free: This is perfect for people who work part-time or have side hustles. You get access to unlimited mileage tracking, tax calculation summaries, and the ability to add income and expenses. You can also export or email reports from Hurdlr under this plan. Sign up for Hurdlr’s free plan.

Note: On this plan, you will have to manually start and stop the mileage tracker. If you’d prefer it to track your driving automatically, you’ll want to upgrade to the Premium plan.

Premium: This plan costs users $10/month or $8.34/month if billed annually. You also get unlimited mileage tracking, but you also get other services like:

  • Auto-Expense Tracking
  • Auto-Income Tracking
  • Speed Tagging
  • The ability to set your work hours
  • Real-Time Calculations for State and Self-Employment Taxes

Enterprise: This plan is designed for businesses to use. It allows access to all of the tracking tools to your entire company. There’s also personalized training offered with Enterprise to share with your team. For pricing, you need to contact Hurdlr directly.

Tracking mileage through Hurdlr could quickly increase your 2022 Mileage Tax Deduction. If you aren’t doing a good job of tracking your mileage then you are probably leaving money on the table.

At $5 a month, you’d only need to track an extra 25 miles per month, approximately—depending on your tax rate.

If you think you might be missing that by trying to track manually, then Hurdlr will pay for itself! To say nothing of the time you’ll save by being able to skip this task.

How do you track your mileage?

Get the Most from Your Mileage Tax Deduction
Emily Guy Birken About Emily Guy Birken

Emily Guy Birken is an award-winning writer, author, money coach, and retirement expert. Her four books include The Five Years Before You Retire, Choose Your Retirement, Making Social Security Work For You, and End Financial Stress Now.


    Speak Your Mind


  1. I found MileMarx GPS tracker to be very easy to use.

  2. I never knew you could log miles for medical reasons…interesting.

    Keeping logs is important, and every minute you spend to document anything is worth your time. With gas at $3.60 a gallon, I spend about .18 per mile purely in gas, with the medical deduction, for example, I would basically get $.05 per mile back assuming 25% taxes. That’s like going from 20mpgs to 25…worth my time, no doubt!

  3. Avatar Edwin @ Stack The Chips says

    The important thing is to keep good records. If you don’t get audited then you won’t ever need them, but if you do, they’ll be a lifesaver.

  4. Avatar Jon | Free Money Wisdom says

    Keep those receipts! I’ve been refused a tax deduction because I ended being audited and I couldn’t back up my claims with receipts! HUGE lesson learned 🙁

  5. I started tracking my miles because I drive a lot for my charity work however, I don’t do itemized taxes yet so it was a little bit of a waste of time.