The Internal Revenue Service (IRS) has released its updated business mileage rate for 2025, and if you’re a handmade seller in the US, it’s time to take notice. Whether you’re driving to pick up crafting supplies, deliver orders, or attend craft fairs, tracking your mileage can make a big difference during tax season.
Let’s break down the new business mileage rate, why it matters, and how you can maximize your deductions to keep more of your hard-earned money.
What is the 2025 Business Mileage Rate?
Each year, the IRS sets a standard mileage rate to help taxpayers calculate the deductible costs of using their vehicles for business purposes. In 2025, the business mileage rate is 70 cents per mile, a 3-cent increase from 2024.
Why Handmade Sellers Should Track Their Business Mileage
Tracking your business mileage may seem like a small task, but it can lead to big savings. Whether you’re running errands for supplies, making local deliveries, or traveling to craft fairs, every business-related mile you drive can lower your taxable income. Keeping a detailed mileage log not only helps you maximize your deductions but also makes tax filing much less stressful. Here’s how mileage tracking benefits your handmade business.
Save Money on Taxes
Every mile you drive for business-related purposes—such as picking up supplies, delivering products, or meeting clients—can be deducted from your taxable income. This deduction reduces your overall tax bill, meaning you keep more money in your pocket.
Eligible Business Activities Include More Than You Think
You might be surprised at what counts as deductible mileage. Here are a few examples specific to handmade sellers:
- Driving to buy supplies at a craft store or wholesaler
- Delivering local orders to customers
- Traveling to a craft fair, market, or pop-up event
- Meeting with potential collaborators or clients
- Heading to the post office to ship packages
For a full list of which trips qualify for a business mileage deduction, read IRS Topic No. 510, Business use of car.
Simplifies Your Tax Filing
Keeping an accurate log of your business mileage throughout the year makes tax time much easier. Instead of scrambling to remember your trips, you’ll have a ready-to-go record for your tax preparer—or for filing your taxes yourself.
How to Track Your Mileage
To claim a mileage deduction, the IRS requires detailed records. Staying organized is key! Here’s what to include in your log:
- Date of the trip
- Starting and ending mileage (or total miles driven)
- Purpose of the trip
- Locations (where you started and ended)
Tips for Easy Mileage Tracking:
- Use mileage-tracking apps like MileIQ, Stride, or QuickBooks Self-Employed to automatically log your trips.
- Keep a small notebook in your car if you prefer handwritten logs.
- Reset your car’s trip odometer at the start of each drive—it’s a simple way to track mileage for a single trip.
Maximizing Your Mileage Deduction with Smart Planning
Tracking your mileage is only part of the equation—planning your trips strategically can help you save even more time and money. Here’s how:
- Batch errands: Combine multiple business-related tasks into one trip. For example, visit your supplier, post office, and packaging store in the same outing.
- Track seasonal travel: If you attend holiday craft fairs or markets during peak seasons, those miles can add up fast—don’t forget to log them.
Get Ready for Tax Season
The updated 2025 mileage rate gives handmade sellers a valuable opportunity to save money and make the most of their tax returns. By tracking your mileage and staying organized, you can ensure you’re maximizing your deductions. As you plan your next craft fair trip or supply run, make mileage tracking part of your routine—and watch your savings grow!
For more info about the 2025 mileage rates, review the IRS’s Standard Mileage Rates. To receive more small business tips, check out eRank’s blog for resources designed to help handmade sellers thrive. Happy crafting—and safe travels!
