IRS Issues Standard Mileage Rates for 2025
The Internal Revenue Service (IRS) issued the optional 2025 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The mileage rate for automobiles driven for business increased by 3 cents for 2025, while the mileage rates for vehicles used for other purposes will remain unchanged from 2024. 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 or moving purposes for qualified active-duty members of the Armed Forces (unchanged from 2024).
- 14 cents per mile driven in service of charitable organizations (unchanged since 2022).
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. Notice 2025-5 contains the optional 2025 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the IRS Notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2025 for which employers may use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule.
