A common question many independent contractors, employees, managers, and business owners alike have is whether their or their employees’ commutes to their place of work is tax-deductible or reimbursable. In most cases, those commutes are not.
Under IRS rules, regular driving between your home and your main place of work is considered personal commuting. That means it’s generally not tax-deductible, and it’s also not mileage that employers typically reimburse.
That’s the short answer. If you’re curious as to what specifically is considered a commute, what the exceptions can be, and how drivers and companies can manage commutes, read on!
What Counts as Commute Mileage?
Commute mileage generally refers to the miles you drive between your home and your regular work location.
For example, if you drive from home to your usual office in the morning and then back home at the end of the day, that would be generally called a commute, and thus your mileage you accrued in that time would be commute mileage.
The IRS treats these miles as personal, even if the drive is long, you carry work materials in the car, or you take a work-related call along the way.
Is Commute Mileage Tax Deductible?
No, commute mileage is not tax deductible in pretty much any case.
For most people, normal commute miles are not deductible on a federal tax return. That refers to regular home-to-work driving.
Related: How to Calculate Your Mileage for Taxes
For employees of companies, the rules are even more strict. Most W-2 employees can’t deduct unreimbursed mileage on their tax return, work mileage or commute mileage.
For self-employed people, independent contractors, and business owners, the rule is still that ordinary commuting is personal. But certain trips that look similar to commuting can qualify as business mileage depending on where you are going and why.
Is Commute Mileage Reimbursable?
Usually no. Most companies don’t reimburse an employee’s normal commute because it’s considered personal mileage, not business mileage. This is a standard practice and will generally not have any effect on businesses’ abilities to hire or retain quality employees.
That said, companies can choose to reimburse commuting in some situations as a policy decision. The bigger question is whether the trip should be considered business mileage under an individual company’s reimbursement policy and tax-related rules.
In practice, however, most company mileage policies only allow for reimbursements on actual business driving, such as trips to visit clients, travel between job sites, or temporary work-related travel.
Related: How to Calculate Your Mileage for Reimbursement
When Home-to-Work Mileage Can Count
While driving from home generally counts as a commute whose mileage can’t be deducted on taxes or reimbursed by a company, there are some exceptions.
Temporary Work Locations
If you have a regular work location (like an office building), travel between your home and a temporary work location can count in some situations. A temporary work location is one where the assignment lasts for a year or less.
If it will last more than a year or even if there’s no realistic expectation that it will last one year or less, it’s generally treated as an indefinite workplace instead, and thus trips to it are not deductible/reimbursable.
Travel Between Two Work Locations
If you leave one workplace and drive to another during the same day, that would be considered business mileage, not commuting.
For example, driving from your office to a client meeting or from one job site to another would typically count.
Traveling From a Qualifying Home Office
If your home office qualifies as your main place of business, trips from that home office to another work location within the same trade or business can count as business mileage.
Related: How Employees Working From Home Deduct Their Mileage
However, this is narrower than you might think, and working from home may not necessarily mean it’s a qualified principal place of business. The IRS has very specific rules and regulations regarding what is or isn’t a home office, so be sure to double-check with a tax professional if you’re unsure of your situation.
Commute vs. Business Mileage
Here’s a simple way to think about it.
Commute mileage is your normal drive between your home and your regular workplace.
Business mileage is driving you do for work after the workday has started, between work locations, to clients, to temporary job sites, or for other qualifying business purposes.
That difference matters for both tax deductions and company employee reimbursement.
Related: Is Mileage Reimbursement Considered Taxable Income?
Commute vs. Business Mileage Examples
Commutes not usually deductible or reimbursable:
- Driving from home to your regular workplace (e.g., an office building)
- Driving from your regular office back home
- Finding parking at your main workplace
- Running personal errands on your way to work
Trips that are typically deductible or reimbursable:
- Driving from the office to a client meeting
- Driving between job sites during the workday
- Driving from home to a temporary work location
- Driving from a qualifying home office to another work location
Why Commute Mileage Matters For Companies
If your company reimburses mileage, you need to have a clear commute reimbursement policy for your employees to follow. If employees include normal commute miles in their reports, you’re going to be paying them for non-work-related miles.
Related: Accountable Plans for Employee Reimbursement Explained
That’s why it’s important to define your team’s mileage policy clearly. Employees should know which trips count as commutes, what counts as business travel, and what details they need to document in order to substantiate their reimbursement requests.
How to Track Mileage the Right Way
Whether you’re driving for work as an independent contractor or an employee, the same basic habit matters: keep an accurate mileage log.
The IRS requires mileage logs to show the date, destination, miles driven, and business purpose of each trip. This helps you keep your deductions in the event of an audit, and helps keep employee reimbursements tax-free.
You can track mileage with pen-and-paper logs, but using an automatic mileage tracker app makes things easy. Apps like TripLog start tracking when you start driving, stop when you stop, and auto-categorize your trips as business or personal based on your rules!
TripLog Unique Feature: Commute Mileage Exemption
One of TripLog’s many unique features that sets it apart from other mileage and expense trackers is its commute mileage exemption feature. Companies are able to set rules exempting certain trips from their employees’ mileage logs, such as:
- The total trip mileage of the day
- Only the first trip of the day
- Only the last trip of the day
- Both the first and last trip of the day
For example, if the company was to choose the “Both the first and last trip of the day” option, then their TripLog users would have their first and last trips (i.e. their commute to and from their place of work) exempt from the companies’ mileage reports.
Related: What Do Most Businesses Pay for Mileage Reimbursement?
Commute Mileage Frequently Asked Questions
Are commute miles ever deductible?
For true commutes, usually no. Regular home-to-work driving is generally personal. The main exceptions involve situations like temporary work locations, travel between work locations, or travel from a qualifying home office.
Can employers reimburse commute mileage?
They technically can, but normal commutes are usually not treated as reimbursable business mileage by most companies.
Do remote employees get to deduct home-to-work travel?
Not automatically. Remote work by itself does not turn commuting into deductible mileage, though there are exceptions (such as if you have a qualifying home office).
What is the easiest way to separate commuting from business mileage?
Use a mileage log, or a mileage tracking app that automatically records each trip and classifies it for you correctly.
Commute Mileage: In Conclusion
For most people, understanding commute mileage is simple: normal travel from your home to your place of work is personal, not business mileage, and can’t be deducted on taxes or requested to be reimbursed by an employer.
TripLog makes that easier by automatically recording trips and categorizing mileage as business or personal. You can download TripLog and start tracking unlimited automatic mileage for free on iOS or Android, or schedule a demo for your team today!
