Business Miles vs Commuting Miles

Business miles include traveling from your office or place of work to another and are tax deductible (if you’re self-employed or a business owner) or subject to reimbursement (if you’re an employee). Commuting miles involve mileage from home to work and are not tax deductible. 

Properly differentiating between these two classes of mileage is crucial, as the IRS only allows employee reimbursement or a tax deduction of business miles.

In this article, we’ll cover the basics of business miles vs commuting miles, and how they apply to both employees and self-employed individuals. 

Business miles

Trips from one workplace to another are considered business driving by the IRS and can be written off on your tax return or reimbursed by your employer. 

Business miles could also include: 

• Driving between two different work locations
• Driving from home to a temporary work location (if you’re going to work there short-term, which the IRS defines as less than 1 year) 
• Driving between client meetings or visiting customers
• Running other business errands 

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Commuting miles 

Commuting miles are not tax deductible, and the IRS defines them as: 

• Driving from home to a permanent workplace
• Driving from home to your second workplace 

The following mileage also doesn't count as business:

• Hauling tools or instruments 
• Personal trips with a car displaying advertisements

Differentiate between business and commute

The infographic below illustrates which trips are deductible/qualify for reimbursement.

Working from an office

Let’s say you work in an office but regularly meet with clients on-site. 

Your drive from home to the office is considered a commute, while any mileage from your office location to client sites is classified as business miles. 

Since you’ll most likely be doing both within a working day, it’s important you track mileage and separate commuting and business miles in your records - you can find more advice on that in a section below. 

Working from home

If your home doubles as your principal place of work, which is generally the case for fully remote employees or self-employed individuals, you can request mileage reimbursements or tax deductions for work-related driving.

This might include heading to a client location from your home or running business errands. 

However, if you’re a remote employee and travel to a primary office location, those miles are classed as commuting. Any travel from your main place of work to business-related locations outside your company’s office are business miles.

The IRS publication 587 can help you figure out the circumstances, where your home is considered your principal place of business.  

Tracking your mileage and keeping records

To be eligible for reimbursement by an employer or a deduction on your tax return as a self-employed worker, you need to keep a mileage log of the business portion of your overall driving. This includes the date and location you traveled to and from.

A mileage tracker app can help you automatically separate your personal and commuting driving from business trips, making it easy to create reports for your employer or accountant.

How to claim your business mileage

As employees

Your employer can reimburse you for your business driving by applying one of the three reimbursement methods. For specific rules and regulations that apply, read our mileage reimbursement guide.

As self-employed

As a self-employed individual, you may be eligible to write off your business-related mileage. To help navigate your possible deductions, read our mileage deduction guide for the self-employed.

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