The Internal Revenue Service (IRS) has announced an adjustment to the optional standard mileage rates for 2025. Effective January 1, 2025, the rates for using a car, van, pickup, or panel truck are as follows:
- Business Use: 70 cents per mile (an increase of 3 cents from 2024)
- Medical Purposes: 21 cents per mile (unchanged from 2024)
- Moving Purposes for Qualified Active-Duty Armed Forces Members: 21 cents per mile (unchanged from 2024)
- Charitable Organizations: 14 cents per mile (set by statute and unchanged)
These rates apply to all vehicle types, including fully electric, hybrid, gasoline, and diesel-powered vehicles.
Please 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 military members can deduct moving expenses related to a permanent change of station.
Using the standard mileage rates is optional; taxpayers may choose to calculate the actual costs of using their vehicle instead. For those opting for the standard rate, it’s important to apply it consistently based on the vehicle’s use and ownership status.
For more detailed information, you can refer to the official IRS announcement: https://www.irs.gov/pub/irs-drop/n-25-05.pdf