Auto Mileage Rates for 2025
On December 19, 2024, the IRS issued in Notice IR 2024-312 the 2025 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on Jan. 1, 2025, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 70 cents per mile driven for business use, up 3.0 cents from 2024.
- 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces; the same as 2024.
- 14 cents per mile driven in service of charitable organizations; the same as 2024.
These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.
While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.
Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. And only taxpayers who are members of the military on active duty may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.
Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.
Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.
For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.