IRS increases the standard mileage rate for business use in 2025

On December 19, 2024, the Internal Revenue Service (IRS) issued the 2025 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2025, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 70 cents per mile driven for business use, up 3 cents from 2024.
• 21 cents per mile driven for medical purposes, the same as last year.
• 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, the same as last year.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2024.

These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Read the full article on the IRS's website: IRS increases the standard mileage rate for business use in 2025.

For rates for this year and all prior years, see the IRS's Standard Mileage Rates page.