STANDARD MILEAGE RATES FOR 2025

On December 19, 2024, the Internal Revenue Service announced that the optional standard mileage rate (click here) for automobiles driven for business will increase by 3 cents in 2025, while the mileage rates for vehicles used for other purposes will remain unchanged from 2024.

Optional standard milage rates are used to calculate the deductible costs of operating vehicles for business, charitable and medical purposes, as well as for active-duty members of the Armed Forces who are moving (click here).

Beginning Jan. 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be: · 70 cents per mile driven for business use (click here), up 3 cents from 2024.

· 21 cents per mile driven for medical purposes, the same as in 2024.

· 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.

· 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.

The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles. See IRS Notice 2025-5 for further information (click here).