GUIDE

What mileage rate can I charge a client?

Q: What mileage rate can I charge a client?

You can charge a rate negotiated in your service contracts, often using the standard IRS mileage rate as a baseline. TradesTimer helps you justify these charges by automatically recording every trip and distance between jobsites for an accurate, exportable log.

By Ryder Wishart — years on the tools, then time tracking in a contractor’s back office · Updated 2026-06-08

QUICK QUIZ

If you use the standard IRS mileage rate as your client billing rate, what is the primary risk?

There are no laws dictating your client rates; the IRS rate is strictly for tax-deductible expense benchmarks.

The IRS rate is a simplified calculation for taxes; a custom client rate should account for your specific costs like insurance and depreciation.

The IRS focuses on whether your deductions are documented, not whether your private client contracts are higher than their benchmark.

Always keep a distinction between your tax-deductible mileage and your billable mileage to ensure clean records for both the IRS and your clients.

The Difference Between Tax Rates and Client Rates

The standard mileage rate set by the IRS is a benchmark used for calculating tax-deductible business expenses. It is not a legal mandate for what you must charge a client.

While the IRS rate is a great starting point, your client rate should ideally cover the actual cost of operating your vehicle, including fuel, insurance, and maintenance.

Calculating a Sustainable Rate

When setting your rate, consider the 'hidden' costs of driving. This includes tire wear, oil changes, and vehicle depreciation.

If you only charge for fuel, you may find that your profit margins shrink as your vehicle ages and requires more frequent repairs.

Providing Verifiable Proof

Disputes over mileage can damage client relationships. Having a precise, automated record of every trip between jobsites provides the objective data needed to back up your invoices.

TradesTimer uses background GPS to automatically detect 'trips' and 'stops,' recording the exact distance for every journey without you ever needing to start a timer.

FAQ

Does TradesTimer calculate the total dollar amount for my mileage?

No, TradesTimer provides the exact distance and trip data, which you can then multiply by your specific chosen rate.

Can I use my mileage log for tax season?

Yes, the app generates an automatic mileage log that you can export to support your tax deductions.

Last updated 2026-06-08.