IRS Mileage Rate 2025 for TaskRabbit Workers

Did you know that tracking your miles as a TaskRabbit worker could save you thousands in tax deductions? Whether you're assembling furniture across town or picking up supplies for multiple jobs, understanding the 2025 IRS mileage rate isn't just about following tax rules—it's about keeping more of your hard-earned money. Let's break down exactly what this means for your TaskRabbit business.

Understanding the IRS Mileage Rate

For each mile you drive for TaskRabbit work in 2025, you can deduct a specified amount from your taxes. While using the best mileage tracking app makes capturing these deductions automatic, knowing the basics helps you maximize your savings with the tax deductions that may be available.

Definition of IRS Mileage Rate

The IRS mileage rate is the standard amount you can deduct for each mile driven for business purposes. This rate is adjusted annually and reflects the costs associated with operating your vehicle. For you as a TaskRabbit worker, knowing this rate is crucial because it allows you to track your expenses effectively and minimize your tax liabilities. Your deductible mileage includes trips to jobs, errands, or client meetings, all of which contribute to your overall costs. Understanding how to leverage this rate can significantly impact your bottom line, especially if you rely heavily on your vehicle for income. 

How the IRS Mileage Rate is Calculated

The IRS determines the mileage rate based on various factors, including fuel prices, maintenance costs, and depreciation. Each year, this rate may change to reflect current economic conditions.

You have two options for vehicle deductions:

1. Standard Mileage Rate: The simpler choice where you multiply your business miles by the IRS rate. You'll likely prefer this method because automatic mileage tracking makes it nearly effortless.
2. Actual Expenses Method: You track all vehicle costs—gas, maintenance, insurance, depreciation, etc. This method requires more detailed recordkeeping but might yield larger deductions depending on your situation.

TaskRabbit and the Gig Economy

As a TaskRabbit worker, you're part of the growing gig economy. Understanding how to maximize your earnings through proper mileage tracking is essential for your success.

Best Mileage Tracking Apps for TaskRabbit Workers

TaskRabbit connects you directly with clients needing your services. This flexibility allows you to work on your terms, but it also means taking responsibility for your business expenses and tax planning. The platform lets you leverage your unique talents—whether that's handyman skills, cleaning expertise, or tech support—while managing your business expenses wisely. Pair TaskRabbit with Everlance, the best mileage tracking app for gig workers.

How to Track Business Miles with Apps

Using a reliable mileage tracking app like Everlance is crucial because the IRS requires documentation of your business trips. Modern mileage tracking apps automatically capture your routes and classify your trips, tracking important miles like:

• Driving to your TaskRabbit jobs
• Picking up supplies for projects
• Meeting clients for consultations
• Running work-related errands

Real-World Mileage Tracking Example

Let's say you:

• Drive to 3 furniture assembly jobs per day
• Average 40 miles of business driving daily
• Work 5 days a week

That adds up to about 10,000 business miles per year. At the 2025 IRS mileage rate of 67 cents per mile, you're looking at potential tax deductions of $6,700—just from tracking your mileage.

Pro tip: While your mileage tracking app automatically logs your drives, snap photos of parking and toll receipts to store them all in one place. The IRS accepts these as additional deductions on top of your standard mileage deduction. Additionally, maintaining a mileage log—whether through an app or a simple notebook—can provide the necessary documentation to substantiate claims during tax filing.

Preparing for Rate Changes in 2025

Stay informed about rate changes that may affect your deductions. Recent years have seen significant fluctuations due to changing fuel prices and vehicle costs. Understanding these changes helps you plan your business finances more effectively. 

What is the 2025 IRS Mileage Rate?

While the IRS hasn't announced the official 2025 mileage rate yet (typically announced in late 2024), you can plan ahead by understanding how these rates work. The 2024 rate is 67 cents per mile for business use - reflecting recent increases in vehicle costs and gas prices. For your planning purposes, consider that mileage rates have generally increased over recent years due to rising vehicle operating costs. When the 2025 rate is announced, your mileage tracking software will automatically update to ensure you get the correct deduction amount.

Setting Yourself Up for Success

Running your TaskRabbit business successfully requires more than just completing tasks—it's about smart business management. The best mileage tracking app helps by providing:

• Automatic trip logging for accurate tax records
• Real-time expense tracking to understand your true costs
• Professional reports for tax time
• Digital receipt storage for all business expenses
• Built-in tax rate updates to keep you current

Knowledge is your secret weapon in the gig economy. While mileage tracking software handles the day-to-day logging, take time to understand your business finances. Set aside 25-30% of your earnings for taxes, and maintain a separate emergency fund for unexpected vehicle repairs. Review your mileage reports monthly to identify your most profitable service areas and jobs. Connect with other TaskRabbit workers through online forums—their experiences can help you avoid common pitfalls and discover new opportunities to grow your business.

Thanks for reading! If you want to automatically track mileage, download Everlance to learn more about our mileage tracking software and to get notified when the 2025 IRS mileage rate is announced.