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The IRS Mileage Rate for 2025

MileIQ Team
December 5, 2024
IRS Mileage Rate 2025

The IRS will announce the standard mileage rates for 2025 soon — here are some of our predictions based on past trends.

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Standard mileage rate for 2025

What will the mileage rates be in 2025? 

The IRS typically releases the rates in mid-December and has been raising the business mileage rate steadily over the past few years. Considering inflation and other economic factors, it will likely be going up again — great news, if you get reimbursed for driving at work or deduct mileage on taxes. 

The 2024 mileage rate for business drives is 67 cents per mile, and will likely go up to 68-70 cents. 

The medical mileage rate may also increase slightly, from current 21 cents to 22 cents. 

Charitable mileage rate will likely remain the same at 14 cents per mile. 

When will the 2025 mileage rates go live?

For the past two years, the IRS released the rates in early to mid December (Dec 14 for 2024 and Dec 5 for 2023). That means we should be hearing about the new rates very soon. 

If you track your mileage with MileIQ, don’t worry. We’ll update the rates for you as soon as we get the word from the IRS. Your 2025 mileage reports will all be compliant with the new standard mileage rates (unless you set a custom rate, which stays the same). 

And if you don't yet track business mileage (or use pen and paper), you could be missing out on valuable deductions or reimbursements! Learn more about why tracking mileage matters. 

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 drives 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?

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MileIQ: Mileage Tracker & Log

MileIQ Inc.

GET — On the App Store

View
MileIQPricing
Open MenuClose Menu

Standard mileage rate for 2025

What will the mileage rates be in 2025? 

The IRS typically releases the rates in mid-December and has been raising the business mileage rate steadily over the past few years. Considering inflation and other economic factors, it will likely be going up again — great news, if you get reimbursed for driving at work or deduct mileage on taxes. 

The 2024 mileage rate for business drives is 67 cents per mile, and will likely go up to 68-70 cents. 

The medical mileage rate may also increase slightly, from current 21 cents to 22 cents. 

Charitable mileage rate will likely remain the same at 14 cents per mile. 

When will the 2025 mileage rates go live?

For the past two years, the IRS released the rates in early to mid December (Dec 14 for 2024 and Dec 5 for 2023). That means we should be hearing about the new rates very soon. 

If you track your mileage with MileIQ, don’t worry. We’ll update the rates for you as soon as we get the word from the IRS. Your 2025 mileage reports will all be compliant with the new standard mileage rates (unless you set a custom rate, which stays the same). 

And if you don't yet track business mileage (or use pen and paper), you could be missing out on valuable deductions or reimbursements! Learn more about why tracking mileage matters. 

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 drives 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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