IRS Releases Standard Mileage Rates for the 2025 Tax Year

The IRS released updated optional standard mileage rates that are used to calculate the deductible costs of using a car for business, charitable, medical or moving purposes. In 2025, the optional standard mileage rate for using a car for business purposes will be 70 cents per mile driven for business purposes (up from 67 cents per mile in 2024). The rate for miles driven for moving or medical purposes in 2025 will be 21 cents per mile (the same as 2024). The charitable rate also remains unchanged at 14 cents per mile. The rates apply to both electric vehicles, gasoline-powered vehicles and diesel vehicles. However, the suspension of all miscellaneous itemized deductions and the deduction for moving expenses for the 2018-2025 tax years means that most taxpayers who previously deducted these expenses will no longer be entitled to do so. Those individuals who were previously entitled to take the business mileage expense deduction as an above-the-line deduction, however, many continue to do so. Taxpayers may deduct moving expenses if they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more information on deducting business-related travel expenses, visit Tax Facts Online. Read More: Link to Q8745. Note: Q8745 and Q749 were updated.