IRS Announces 2025 Standard Mileage Rates

The Internal Revenue Service has announced the 2025 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

New Rates for 2025

Beginning on January 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• 70 cents per mile driven for business use (up 3 cents from 2024)
• 22 cents per mile driven for medical or moving purposes (unchanged)
• 14 cents per mile driven in service of charitable organizations (fixed by statute)

Important Notes

Taxpayers should be aware of the following:

• The business mileage rate is based on an annual study of fixed and variable costs of operating an automobile
• The medical and moving rate is based on variable costs only
• The charitable rate is set by law under section 170(i) of the Internal Revenue Code
• Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates