How to Track Car Mileage for Taxes

If you drive for a side hustle, deliveries, client visits, or supply runs, those business miles may be deductible. The catch: you generally need a record made at the time, not a guess in April. Here's a simple way to keep one.

General information only, not tax advice. Rules differ by country and situation, so check official guidance (in the US, the IRS) or a tax professional for yours.

What a mileage log usually includes

For each business trip, write down:

Also note your odometer reading at the start and end of the year, so you can show total miles vs. business miles.

Business vs. personal miles

In the US, driving from home to a regular job is generally treated as commuting, not business. Trips between work locations, to clients, or for business errands usually count. Mixed trips get tricky; when in doubt, log the trip and the purpose, and check the rules.

Standard rate vs. actual expenses

US filers usually choose between:

• Standard mileage rate: business miles × the IRS rate for that year. The rate changes, so look up the current one on irs.gov rather than relying on an old number.
• Actual expenses: the business share of gas, insurance, repairs, depreciation and so on. More records, sometimes a bigger number.

Either way, the business-mile count is the base, so the log matters.

A 2-minute habit

1. Log each trip the same day (phone note, spreadsheet, or a notebook in the glovebox).
2. Once a week, total the miles.
3. Once a month, add them to your side hustle records with income and other expenses.

Common mistakes

• Reconstructing a whole year from memory
• Leaving out the purpose
• Counting commuting miles
• Forgetting parking and tolls (often tracked separately)

If you want a spreadsheet to start: the Mileage Log & Car Expense Tracker ($5, Excel and Google Sheets) has a trip log where you mark each trip business or personal, a car expense log, and a monthly summary of business miles, business % and a mileage total at the per-mile rate you enter. You type in trips; there's no GPS. If you also want side hustle income and expenses in one place, the Side Hustle Income & Expense Tracker ($7) has a simpler business-miles log next to them. A notebook works fine too.

Honest note: I make these templates and sell them under Cedar & Ledger, so I'd earn from a purchase. General information only, not tax advice.

Filing soon? The tax prep checklist for side hustlers lists what to gather besides your mileage log.

Try the free side hustle tax calculator (how much to set aside) →

Try the free mileage deduction calculator →

Related template: Mileage Log & Car Expense Tracker. Also see: Side Hustle Income & Expense Tracker

See all Cedar & Ledger templates