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Taxes

The IRS Mileage Rate for 2025

MileIQ Team
December 19, 2024
IRS Mileage Rate 2025

Looking for the 2025 standard mileage rates? Find them here:

  • 70 cents per mile for business purposes
  • 21 cents per mile for medical and military moving purposes
  • 14 cents per mile for charitable purposes

If you track mileage for taxes, you need to use these rates when calculating deductions. And if you’re self-employed and don’t yet track business mileage, you could be missing out on valuable deductions! Learn more about why tracking mileage matters.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

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What are standard mileage rates?

Standard mileage rates are set cents-per-mile rates taxpayers use to calculate mileage deductions. That’s because the IRS allows people driving their personal car for business, charitable, medical, or moving purposes to recuperate some of those costs via a tax write off.  

The IRS sets the standard rates in the US and updates them every year (sometimes more often when there is an abrupt change in the economy). Any changes are meant to reflect fluctuating costs of driving and maintaining a vehicle, including:

  • Fuel
  • Inflation
  • Vehicle depreciation
  • Maintenance and repairs
  • Government policies
  • Cost of insurance

Who can use standard mileage rates?

There are many use cases for standard mileage rates. 

If you’re self-employed or run a business, you can use the business mileage standard rate to claim tax deductions or to give your employees tax-free reimbursements for using personal vehicles at work.

If you expect to have over 7.5% of your adjusted gross income go to medical expenses, you can use the medical mileage rate to deduct mileage driven to clinic visits (in-patient or outpatient) and to pick up prescriptions. Parents and caregivers can also use this deduction.

If you’re an active duty military member, you can use the moving standard mileage rate to deduct mileage driven to re-locate on orders. 

If you drive for a charity organization as a volunteer, you can use the charitable mileage rate to deduct those miles on your taxes. 

These rates apply to most gasoline-powered, hybrid, and electric vehicles, including cars, vans, and pickup trucks. If you ride a scooter or a motorcycle, you’ll need to use the actual expense method to figure out deductions. 

Using current business mileage rates as an employer or employee

For businesses, mileage rates tell you how much you can reimburse employees for using their vehicles for work-related travel without them having to pay income tax. This includes attending business meetings, off-sites, conference trips, and any work-related activities, except daily trips between home and work. 

Using current business mileage rates as a self-employed person

As a self-employed individual, you can use standard mileage rates to calculate tax deductions for business use of your vehicle. This includes drives to client meetings, site visits, or any travel directly related to your business activities. Mileage deductions lower your taxable income, which is particularly important for self-employed people who tend to have higher taxes. 

Both self-employed people and businesses need to track business mileage to claim it on taxes, which can be challenging with personal vehicles. Instead of keeping a paper mileage log in the car, many prefer to use a mileage tracking app because it tracks drives automatically and lets drivers classify trips as business vs. personal.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

Get Started

How to use current mileage rates to save on taxes 

Deducting mileage on taxes is probably one of the simplest ways to reduce your taxable income, if you use the right tools. 

1. Track your mileage: “Always be tracking” should be your motto if you plan to deduct mileage for any of the above reasons (business, medical, move-related, or charity). The easiest way to do that is with a mileage tracking app. 

2. Multiply your mileage by the standard rate: Multiply the number of business, medical, charity, or move-related miles by its respective current mileage rate. 

3. Keep your mileage reports: Hold on to your mileage records. You likely won’t need to attach them to a tax return but the IRS will ask to see them if you’re ever audited. 

Using a mileage tracking app can make all three of these steps much easier, and in some cases do all the work for you.

For example, MileIQ automatically calculates your potential mileage deductions if you drive for work and defaults to the most current IRS rate, so you don’t need to do the math yourself. Best of all, it auto-generates reports with all the addresses, dates, and total mileage driven so you don’t have to create spreadsheets for the IRS. 

Still tracking miles by hand?

Use MileIQ to automatically keep a full, IRS friendly mileage log.

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MileIQ: Mileage Tracker & Log

MileIQ Inc.

GET — On the App Store

View
MileIQPricing
Open MenuClose Menu

What are standard mileage rates?

Standard mileage rates are set cents-per-mile rates taxpayers use to calculate mileage deductions. That’s because the IRS allows people driving their personal car for business, charitable, medical, or moving purposes to recuperate some of those costs via a tax write off.  

The IRS sets the standard rates in the US and updates them every year (sometimes more often when there is an abrupt change in the economy). Any changes are meant to reflect fluctuating costs of driving and maintaining a vehicle, including:

  • Fuel
  • Inflation
  • Vehicle depreciation
  • Maintenance and repairs
  • Government policies
  • Cost of insurance

Who can use standard mileage rates?

There are many use cases for standard mileage rates. 

If you’re self-employed or run a business, you can use the business mileage standard rate to claim tax deductions or to give your employees tax-free reimbursements for using personal vehicles at work.

If you expect to have over 7.5% of your adjusted gross income go to medical expenses, you can use the medical mileage rate to deduct mileage driven to clinic visits (in-patient or outpatient) and to pick up prescriptions. Parents and caregivers can also use this deduction.

If you’re an active duty military member, you can use the moving standard mileage rate to deduct mileage driven to re-locate on orders. 

If you drive for a charity organization as a volunteer, you can use the charitable mileage rate to deduct those miles on your taxes. 

These rates apply to most gasoline-powered, hybrid, and electric vehicles, including cars, vans, and pickup trucks. If you ride a scooter or a motorcycle, you’ll need to use the actual expense method to figure out deductions. 

Using current business mileage rates as an employer or employee

For businesses, mileage rates tell you how much you can reimburse employees for using their vehicles for work-related travel without them having to pay income tax. This includes attending business meetings, off-sites, conference trips, and any work-related activities, except daily trips between home and work. 

Using current business mileage rates as a self-employed person

As a self-employed individual, you can use standard mileage rates to calculate tax deductions for business use of your vehicle. This includes drives to client meetings, site visits, or any travel directly related to your business activities. Mileage deductions lower your taxable income, which is particularly important for self-employed people who tend to have higher taxes. 

Both self-employed people and businesses need to track business mileage to claim it on taxes, which can be challenging with personal vehicles. Instead of keeping a paper mileage log in the car, many prefer to use a mileage tracking app because it tracks drives automatically and lets drivers classify trips as business vs. personal.

How to use current mileage rates to save on taxes 

Deducting mileage on taxes is probably one of the simplest ways to reduce your taxable income, if you use the right tools. 

1. Track your mileage: “Always be tracking” should be your motto if you plan to deduct mileage for any of the above reasons (business, medical, move-related, or charity). The easiest way to do that is with a mileage tracking app. 

2. Multiply your mileage by the standard rate: Multiply the number of business, medical, charity, or move-related miles by its respective current mileage rate. 

3. Keep your mileage reports: Hold on to your mileage records. You likely won’t need to attach them to a tax return but the IRS will ask to see them if you’re ever audited. 

Using a mileage tracking app can make all three of these steps much easier, and in some cases do all the work for you.

For example, MileIQ automatically calculates your potential mileage deductions if you drive for work and defaults to the most current IRS rate, so you don’t need to do the math yourself. Best of all, it auto-generates reports with all the addresses, dates, and total mileage driven so you don’t have to create spreadsheets for the IRS. 

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