The IRS has announced the standard mileage rates for 2025, effective January 1, 2025:
- Business Use: 70 cents per mile, an increase of 3 cents from 2024.
- Medical or Moving Purposes: 21 cents per mile, unchanged from 2024.
- Charitable Service: 14 cents per mile, unchanged from 2024.
These rates apply to the use of cars, vans, pickups, or panel trucks.
It’s important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Additionally, only active-duty members of the Armed Forces may claim a deduction for moving expenses incurred under orders to a permanent change of station.
Taxpayers have the option to use the standard mileage rates or calculate the actual costs of using their vehicle. For those using the standard mileage rate for a vehicle they own and use for business, it’s required to choose this method in the first year the automobile is available for business use. In subsequent years, they can opt for either the standard mileage rate or actual expenses. For leased vehicles, the standard mileage rate must be used for the entire lease period, including renewals.
