The IRS has raised the standard mileage rate for business use by 3 cents, bringing it to 70 cents per mile for 2025. Other mileage rates remain unchanged from 2024.
2025 Standard Mileage Rates 
Effective January 1, 2025, the rates are:
- 70 cents per mile for business use (up 3 cents from 2024)
- 21 cents per mile for medical (unchanged)
- 21 cents per mile for moving purposes for active-duty military (unchanged)
- 14 cents per mile for charitable services (unchanged)
These rates apply to all vehicle types, including electric, hybrid, gasoline, and diesel.
Rate Determination
The business mileage rate is based on a study of fixed and variable vehicle costs, while the medical and moving rates reflect only variable costs. The charitable rate is set by statute.
Tax Considerations
Under the Tax Cuts and Jobs Act, unreimbursed employee travel expenses cannot be deducted, and only active-duty military members can claim moving expenses.
Choosing Between Standard Mileage Rate and Actual Expenses
Taxpayers can choose between the standard mileage rate or actual vehicle expenses. For business vehicles, the standard rate must be elected in the first year of use, with the option to switch in later years. For leased vehicles, the standard rate applies for the entire lease term.
Notice 2025-5 Details
Notice 2025-5 includes the 2025 mileage rates and outlines the maximum automobile costs for mileage reimbursements under a fixed-and-variable-rate (FAVR) plan. It also covers the maximum fair market value for employer-provided vehicles available for personal use in 2025.
