IRS Standard Mileage Rates
| Year | Rate per Mile |
|---|---|
| 2024 | $0.67 |
| 2025 | $0.70 |
| 2026 | $0.70 |
What Qualifies as Deductible
| Trip Type | Deductible? | Notes |
|---|---|---|
| Tax home to assignment (initial) | Yes | Travel to start a new contract |
| Assignment to tax home (return) | Yes | Travel home between/after contracts |
| Facility to facility | Yes | Travel between work locations |
| Home to licensing office | Yes | License renewals, testing |
| Daily commute at assignment | No | Home-to-work at your temporary location |
| Personal errands | No | Non-work-related driving |
Your daily commute from your temporary housing to the facility is generally not deductible — it’s treated the same as any employee’s commute. The deduction applies to travel between your tax home and assignment locations.
IRS Recordkeeping Requirements
The IRS requires a contemporaneous log — records made at or near the time of each trip. Your log must include:- Date of the trip
- Destination (or route)
- Business purpose of the trip
- Miles driven
W-2 vs. 1099
- W-2 Employees
- 1099 Contractors
Under TCJA (2017–2025), mileage deductions for W-2 employees are suspended on federal returns. However:
- 5 states still allow them (NY, CA, AL, HI, AR)
- The deduction is included in assignment profitability calculations
- TCJA may expire after 2025
How TaxHomeBase Helps
- Mileage page — Log trips with date, miles, purpose, origin, destination
- Purpose categories — tax_home_visit, work_travel, licensing, personal, other
- Deductibility tracking — Automatic classification based on purpose
- Summary calculations — Total miles, deductible miles, estimated deduction
- Export — Mileage Log CSV export for tax preparation
- Integration — Mileage feeds into Tax Estimate, Assignment Profitability, and Tax Home Analysis