Can You Write Off Gas on Your Taxes? Let’s Talk Mileage, Money, and Making It Count 🚗
- Mary Milner, CPA
- Mar 11
- 3 min read
If you're a small business owner who spends a lot of time behind the wheel, you’ve probably wondered: "Can I write off gas as a business expense?"
Short answer? Yes. Longer answer? Yes—but there are rules, of course. Because… taxes. 😉
Let’s break it down in a way that’s actually understandable.
So… is gas deductible or nah?
Good news: If you're using your car for business, you may be able to write off those fuel costs. Whether you're heading to client meetings, picking up supplies, or attending that workshop two cities over—those miles can count toward a nice little tax break.
But don’t get carried away just yet—your gas station snack run and personal errands don’t make the cut. (Sorry, that latte and impulse bag of gummy worms are on you.)
What counts as business mileage?
Not every trip behind the wheel qualifies. Here's what usually does:
Driving between two business locations
Heading to meet a client
Running business-related errands (bank, post office, supply run)
Traveling from your home to a temporary work location
But if you’re just commuting to your regular 9–5? No go. That’s still considered personal mileage in the IRS’s eyes.
You’ve got two ways to claim your car costs:
When it’s time to file your taxes, you’ve got options. Here’s the breakdown:
1. Standard Mileage Method
This one’s the simpler route—just track your business miles and multiply them by the IRS-approved rate.
🚗 For 2025, that rate is 70 cents per mile.
So if you drove 4,000 business miles this year, you’d deduct: 2,500 x $0.70 = $1,750
Easy math. Just be sure you’re keeping a log of each trip—date, destination, purpose, and miles. Bonus points if you use a mileage tracking app (because sticky notes in your glove box are not audit-proof).
2. Actual Expense Method
Feeling a little more detail-oriented? This method might give you a bigger deduction—but it requires more tracking.
You’ll need to add up all your vehicle-related expenses:
Gas
Repairs and maintenance
Insurance
Registration fees
Oil changes
Business parking fees
New tires
And anything else your car needs to keep rolling
Once you total your costs, you calculate what percentage of your driving was for business vs. personal use.
Example: If your business miles make up 60% of your total driving, you get to deduct 60% of your total vehicle costs.
🚘 Let’s say you spent $3,000 on car expenses this year. $3,000 x 60% = $1,800 deduction
You get more precision, but it comes with more paperwork. Pick your poison.
Mileage logs: Not optional, unfortunately
No matter which method you use, the IRS wants proof. That means tracking each business trip with:
Date
Where you went
Why you went
How many miles you drove
If you’d rather not do all that manually, mileage tracker apps are your new best friend. Trust us, they’re way better than scrolling back through your calendar and receipts come tax season.
So, which method should you choose?
That depends on your driving habits and how much time you want to spend tracking expenses.
Want quick and simple? Go Standard Mileage.
Want the biggest possible deduction (and don’t mind the details)? Try Actual Expense.
Either way, gas for business use = tax deduction potential, and that’s a win in our book.
Let Taxish Handle the Heavy Lifting
Feeling unsure which method is right? Or just want someone to take this whole tax thing off your plate? That’s where we come in.
At Taxish, we help business owners like you make the most of your deductions – car expenses, rent, salaries, marketing, and more. We keep things virtual, simple, and yes, even a little fun.
No spreadsheets from 2003. No stuffy suits. Just tax help that makes sense and fits your real life.
Ready to write off those business miles the right way?
👉 Get started here!