Current Government Mileage Rates: See Latest Rates Set by the IRS

Government mileage rates for 2025 tax year

Government mileage rates are your ticket to tax-savings, if you qualify. The IRS releases new rates each year (usually in Dec of the previous year).

Here are the latest federal rates:

Business mileage: $0.70 per mile

Medical mileage: $0.21 per mile

Charity-related mileage: $0.14 per mile

If you're a business owner with drivers, the government guidelines are important for reimbursement — anything at or below the rate counts as tax-free money. That's less paperwork for you and more cash for your drivers.

Need to see rates from past years? You can find them here.

What are government mileage rates?

Government mileage rates, also called standard rates, federal mileage rates, or IRS rates, are a form of tax-break or compensation related to driving.

Some tax-payers can deduct mileage on taxes if they're self-employed and drive for their business, have high medical expenses, or drive for a charity. Military families relocating due to orders can also deduct moving mileage.

Deducting mileage expenses lowers taxable income, so you end up paying less tax, which is of course, welcome news to most people.

Using federal mileage rates to save on taxes

Different people need to track mileage for different reasons. If you're looking to save money on taxes, pay attention to standard mileage rates and any changes.

Deducting business mileage for self-employed

What do real estate agents, mobile dog groomers, delivery drivers, and landscapers have in common? They're often self-employed and drive for work.

If you fit into that Venn diagram, use government mileage rates to get business mileage deductions at $0.70/mile.

Deducting medical and charity mileage

If you itemize deductions, you may deduct mileage related to:

• Doctor visits (if your medical expenses for that year are more than 7.5% of your adjusted gross income) at $0.21/mile
• Driving for a non-profit at $0.14/mile
• A military move on orders at $0.21/mile

Using government rates to reimburse employees

Use the latest IRS business mileage rate ($0.70) to reimburse your drivers tax-free. You can always reimburse drivers more, but any amount above the most recent rate will need to be taxed like regular income.

Figuring out mileage deductions with federal rates

To calculate your deduction (or reimbursement amount) simply multiply the number of eligible miles by the rate for that tax year.

Here's an example with business mileage.

Let's say you're a welder, working on different construction sites throughout the year. You drive to these sites in your own van. You tracked 2,000 business miles and now it's time to reap the rewards of all that diligent mileage keeping.

2,000 mi x $0.70 (the latest business mileage rate) = $1,400

This means you can claim a $1,400 business mileage deduction on your taxes, which means the IRS can now tax $1,400 less of your money.

The best way to track mileage for tax deductions

Adding in personal miles and multiplying them by the federal mileage rates will give you the wrong deduction number, which can lead to trouble down the line.

Avoid costly and stressful audits and IRS penalties by tracking and sorting deductible miles automatically with MileIQ.

MileIQ is an app and reporting platform for self-employed people, businesses, and anyone else who needs accurate, simple mileage tracking.

• Set-it-and-forget it: Download MileIQ, add an odometer reading, and you're good to go. There are no mileage logs to update, just get in the car and go. All your drives are tracked automatically.
• Separate business & personal mileage: Classify a drive as business or personal with a swipe or set up automations and custom purposes for other drive types.
• Easy, tax-compliant reporting: Mileage reports are automatically generated with a tap and calculate the mileage deduction amount for you (no extra math required).