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IRS Announces Increase in Standard Mileage Rate for 2025

The IRS has announced an increase in the standard mileage rate for 2025, raising it by 3 cents per mile. Starting January 1, the rate for business-related driving will rise to 70 cents per mile, up from 67 cents in 2024.

Mileage rates for other purposes, however, will remain the same as this year:

  • Medical or moving purposes for qualified active-duty Armed Forces members: 21 cents per mile.
  • Charitable purposes: 14 cents per mile, a figure set by statute.

These rates apply to all-electric, hybrid-electric, gasoline, and diesel-powered vehicles.

The IRS allows taxpayers to use the standard mileage rate instead of calculating actual vehicle expenses. Businesses and self-employed individuals often use this rate to determine deductible costs for operating a vehicle for business purposes. Employers also rely on it to offer tax-free reimbursements to employees using personal vehicles for work.

Further details on the 2025 mileage rates can be found in IRS Notice 2025-05.