2025 Standard Business Mileage Rate Increases to 70 Cents Per Mile: Other Rates Unchanged
The IRS has issued the 2025 standard mileage rates and other amounts that are used to calculate deductible vehicle expenses. (IR 2024-312, 12/19/2024; Notice 2025-05, 2025-4 IRB)
The standard mileage rates provide an optional method that taxpayers can use to calculate the deductible costs of operating a vehicle for business, charitable, medical, and moving purposes. Taxpayers can also use the actual-costs method.
2025 standard mileage rates. Beginning January 1, 2025, the standard mileage rates for the use of a car, van, or pickup or panel truck will be:
The IRS has also provided other amounts that taxpayers use to calculate their deductible vehicle expenses in specific circumstances, including:
Basis reduction amount. The IRS has also provided the amount taxpayers must use when calculating their basis reduction for depreciation taken under the business standard mileage rate. For 2025, the portion of the business standard mileage rate treated as depreciation is 33 cents per mile.
Note. The Tax Cuts and Jobs Act (TCJA) suspends all miscellaneous itemized deductions that are subject to the 2% of adjusted gross income floor, including unreimbursed employee travel expenses, for tax years 2018-2025. As a result, the business standard mileage rate can't be used to claim an itemized deduction for unreimbursed employee travel expenses during the suspension.
The standard mileage rates provide an optional method that taxpayers can use to calculate the deductible costs of operating a vehicle for business, charitable, medical, and moving purposes. Taxpayers can also use the actual-costs method.
2025 standard mileage rates. Beginning January 1, 2025, the standard mileage rates for the use of a car, van, or pickup or panel truck will be:
- 70 cents per mile driven for business use. This is an increase of 3 cents from 2024.
- 21 cents per mile driven for medical purposes and moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.
- 14 cents per mile driven in service of charitable organizations, also unchanged from 2024.
The IRS has also provided other amounts that taxpayers use to calculate their deductible vehicle expenses in specific circumstances, including:
Basis reduction amount. The IRS has also provided the amount taxpayers must use when calculating their basis reduction for depreciation taken under the business standard mileage rate. For 2025, the portion of the business standard mileage rate treated as depreciation is 33 cents per mile.
Note. The Tax Cuts and Jobs Act (TCJA) suspends all miscellaneous itemized deductions that are subject to the 2% of adjusted gross income floor, including unreimbursed employee travel expenses, for tax years 2018-2025. As a result, the business standard mileage rate can't be used to claim an itemized deduction for unreimbursed employee travel expenses during the suspension.