GUIDE

What counts as business miles vs commuting?

Q: What counts as business miles vs commuting?

Commuting from home to your first job site or from your last job site back home is considered personal mileage. TradesTimer automatically detects 'stops' and 'trips' to help you distinguish between these personal commutes and deductible business travel.

The Commuting Boundary

Generally, the drive from your residence to your first client of the day and the drive from your final client back home are classified as commuting. This portion of your travel is personal and not tax-deductible.

However, any travel between different job sites, or trips from a qualified home office to a client, counts as business mileage. This includes trips to pick up supplies or hardware for a specific project.

Requirements for a Valid Log

To satisfy tax authorities, a valid mileage log must record the date, destination, business purpose, and the number of business miles driven for every trip. You should update these records contemporaneously, at least once a week.

TradesTimer automates this by recording every trip and distance via background GPS, providing a ready-to-export log for tax season. Note: This is general information, not tax advice.

Standard Mileage Rates

For US taxpayers, the IRS standard mileage rate is 70 cents/mile for 2025 and 72.5 cents/mile for 2026. You must elect the standard mileage rate in the first year a car is used for business.

For Canadian taxpayers, the CRA rate is $0.72/km for the first 5,000 km and $0.66/km thereafter for 2025. For 2026, the rate is $0.73/km for the first 5,000 km and $0.67/km thereafter.

FAQ

Is the drive to the hardware store business mileage?

Yes, if the trip is for a specific business purpose, such as picking up supplies for a job.

How often should I review my mileage logs?

You should review and update your logs at least weekly to ensure all business purposes and destinations are recorded accurately.

Last updated 2026-06-08.