Yes. If you use your personal vehicle for business purposes, you can deduct the business-related mileage on your tax return, even if you never bought a separate "business car." This applies whether you're a sole proprietor, freelancer, independent contractor, or small business owner who hasn't incorporated. The key requirement is that the driving has to be for business, not your regular commute, and you need records to back it up.
There are two ways to calculate the deduction. The first is the standard mileage rate, where you multiply your business miles by a per-mile rate set annually by the IRS. This rate is meant to cover gas, maintenance, depreciation, and insurance all in one number, so you don't deduct those costs separately. The second method is actual expenses, where you track every vehicle-related cost — gas, repairs, insurance, depreciation, lease payments — and then deduct the percentage that corresponds to your business use. For example, if 40% of your total driving was for business, you'd deduct 40% of those actual costs.
Most people with modest business driving find the standard mileage method simpler and often more favorable, since it doesn't require saving every receipt. However, once you choose actual expenses for a vehicle in the first year you use it for business, switching back to standard mileage later can be restricted, so it's worth thinking ahead about which method fits your situation.
What counts as deductible business driving? Trips to meet clients, pick up supplies, go to the bank for business deposits, drive to a second work location, or attend business-related errands all generally qualify. Commuting from your home to a regular primary workplace does not count, even if you do some work thinking in the car. If you have a qualifying home office that serves as your principal place of business, trips from home to other business-related stops can often be treated as business mileage rather than commuting, which is a notable exception worth understanding.
Recordkeeping is where many people fall short. The IRS expects a contemporaneous log — ideally recorded at or near the time of the trip — showing the date, destination, business purpose, and miles driven. A simple notebook in the car, a spreadsheet, or a mileage-tracking app that uses your phone's GPS all work fine. What doesn't work well is trying to reconstruct a year's worth of driving from memory in April. If you're ever audited, a clear log is your best protection, since the IRS frequently questions vehicle deductions.
If you drive for business only occasionally, it may still be worth tracking, since even a modest number of miles can add up to a meaningful deduction over a year. For anyone who drives more than just occasionally, comparing the standard mileage method against actual expenses with a tax professional at least once can clarify which approach saves more money for your specific vehicle and driving pattern.