2025 Standard Mileage Rates

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The IRS set the standard business mileage rate for 2025  at 70 cents, which is a 3 cent per mile increase from 2024. However, there is no change for any other use. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating a vehicle for business purposes.

2025 Standard Mileage Rates

 Below are the 2025 rates, which became effective on January 1, 2025.
  • Self-employed and Business – 70 cents/mile (this is an increase of 3 cents per mile from 2024)
  • Medical – 21 cents/mile (no changes from 2024)
  • Moving (military only) – 21 cents/mile (no changes from 2024)
  • Charitable – 14 cents/mile (no changes from 2024)
These rates apply to gasoline, diesel-powered, electric, and hybrid vehicles.  You can view the IRS notice 2025-5 for more information.

Business - 70¢

The mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile.

Medical - 21¢

This applies to miles driven for medical purposes.

Moving - 21¢

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.

Charitable - 14¢

This applies to miles driven in service of charitable organizations.

Business Use of a Vehicle

The business use of your vehicle can have a big impact on your total business expenses, your net income, and your tax burden. Taxpayers who use their vehicle for business purposes can use the standard mileage rate or their actual vehicle expenses to determine their vehicle-related deductible expenses.

Standard Mileage

Using the standard mileage rate, you simply need to track the dates and miles driven for business purposes.  There are apps, such as Expensify and MileIQ, which can help you maintain records. You can log your trips through the year and then multiply the total by the  standard rate to determine the write-off amount for your return.

If you used the standard mileage method the first year your vehicle was used for business purposes, you can choose to switch back and forth between methods from year to year. Each year, you will want to calculate your expenses both ways and then choose the method that yields the larger deduction and greater tax benefit to you.

Actual Expense Method

For the actual expense method, you need to keep track of all expenses paid for vehicle use and maintenance.  This includes tracking and keeping receipts for gas, oil changes, repairs, insurance, and any other fee.  If you use actual expense method the first year you use your vehicle for business use, you will be required to use this method for the vehicle going forward. 

Please save a copy of our Business Use of a Personal Vehicle to refer to as a quick guide.

Vehicle Business Use

The most important factor in either method is proper record-keeping. The law requires you to substantiate any stated expenses by providing adequate records or sufficient evidence to support your statement. The IRS can disallow any expenses not supported by documentation. 

If you use your vehicle for personal use, keep those miles or expenses separate from your business expenses. It is always recommended to use a single bank account or credit card for all your business transactions. Keeping those personal items separate will help you accurately track your business expenses.

Please consult with your Avizo expert on correct reporting and tracking of these expenses to ensure you are able to take the deduction.

Headshot of Taylor C.

Taylor Clinkenbeard, CPA

Taylor is a Manager in our tax and client accounting services teams.  She has developed specific expertise in software, accounting processes, and tax laws to serve our clients.

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