Mileage Rates for 2025

The IRS has announced the 2025 standard mileage rates, effective January 1, 2025. These rates apply to taxpayers using a personal vehicle (cars, vans, pickups, or panel trucks) for various purposes:

  • Business Travel: 70 cents per mile (up from 67 cents in 2024)
  • Medical or Moving Purposes: 21 cents per mile (unchanged from 2024)
  • Charitable Use: 14 cents per mile (fixed by law, remains unchanged)

Key Considerations:

  • The business mileage rate is based on an annual study of both fixed and variable vehicle costs.
  • The medical and moving mileage rates are based only on variable costs.
  • Due to the Tax Cuts and Jobs Act, employees cannot deduct unreimbursed work-related mileage.
  • Moving expense deductions are limited to active-duty military members relocating under orders.

For business mileage, the portion allocated to vehicle depreciation is 33 cents per mile in 2025.

Standard Mileage vs. Actual Expenses:

Taxpayers have the option to deduct actual vehicle expenses instead of using the standard mileage rate. However:

  • If the standard mileage rate is used in the first year a car is placed in service, the taxpayer can later switch between methods.
  • Leased vehicles must stick with the standard mileage rate for the full lease term if initially chosen.

For more details, refer to IRS Notice 2025-5 on the IRS website.

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Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.