IR-2024-312, dated December 19, 2024, announced a 3-cent increase in the business rate for 2025 while leaving the other rates unchanged from 2024.
Source: irs.gov · checked 2026-09-28Standard mileage rate · tax year 2025
IRS mileage rate 2025: 70 cents per business mile
The IRS standard mileage rate for business driving in 2025 is 70 cents per mile, applied to every business mile from January 1 through December 31, 2025, with no mid-year change. It was announced in IR-2024-312 on December 19, 2024 and set out in Notice 2025-5. Medical miles and moving miles for qualifying active-duty military stay at 21 cents, and charitable miles at 14 cents, both unchanged from 2024. The 70-cent rate is what self-employed drivers use on their 2025 returns if they choose the standard mileage method over actual car expenses.
IRS business rate · 2025 70¢
Jan–Dec 2025: 70¢ per business mile
All 2025 rates
Business, medical and charitable miles in 2025
| Period | Business | Medical / moving* | Charitable |
|---|---|---|---|
| Jan–Dec 2025 | 70¢ | 21¢ | 14¢ |
*Moving miles apply only to active-duty members of the Armed Forces. Cents per mile. Not tax advice.
Worked example
1,000 business miles in 2025
The deduction is miles × the rate in force when the miles were driven. One rate covered all of 2025.
Example · deduction for 2025 $700.00
1,000 mi · Jan–Dec 2025 × 70¢/mi = $700.00
From the IRS
What the IRS published for 2025
Notice 2025-5 contains the 2025 standard mileage rates and supersedes Notice 2024-08.
Source: irs.gov · checked 2026-09-28Notice 2025-5 treats 33 cents per mile as depreciation for 2025, up from 30 cents in 2024.
Source: irs.gov · checked 2026-09-28Under a fixed and variable rate (FAVR) plan the standard automobile cost may not exceed $61,200 for 2025, which is $800 lower than the 2024 cap of $62,000.
Source: irs.gov · checked 2026-09-28Business mileage rose 3 cents, from 67 cents in 2024 to 70 cents in 2025. Medical/moving (21 cents) and charitable (14 cents) did not change.
Source: irs.gov · checked 2026-09-28No. The IRS rate table lists a single 2025 rate of 70 cents for the full calendar year.
Source: irs.gov · checked 2026-09-28Publication 463 for 2025 states that the standard mileage rate for the cost of operating your car for business use is 70 cents ($0.70) per mile for January 1 through December 31, 2025.
Source: irs.gov · checked 2026-09-2814 cents per mile, equal to 2024; IR-2024-312 notes the charitable rate is set by statute.
Source: irs.gov · checked 2026-09-28What changed for 2025
IR-2024-312 raised only one number for 2025: business mileage went from 67 cents to 70 cents, a 3-cent increase. Medical driving and moving by qualified active-duty members of the Armed Forces stayed at 21 cents, and charitable driving stayed at 14 cents. The release repeats how the figures are built: the business rate comes from an annual study of the fixed and variable costs of operating an automobile, while the medical and moving rate reflects only variable costs. Inside the business rate, Notice 2025-5 assigns 33 cents per mile to depreciation, three cents more than the 30 cents assigned for 2024. The FAVR standard automobile cost cap moved the other way, down to $61,200 from $62,000. The release also states that the rates apply to fully electric and hybrid cars as well as gasoline and diesel vehicles, so an EV driver uses the same 70 cents. There was no mid-year revision in 2025; every business mile of the year carries the same rate.
Standard mileage or actual expenses for a 2025 return
The 70-cent rate is optional. IR-2024-312 reminds taxpayers they may instead calculate the actual costs of using their vehicle. Publication 463 (2025) sets the ground rules for choosing: for a car you own, you must use the standard mileage rate in the first year the car is available for business, after which you can pick either method each year; for a leased car, choosing the rate locks it in for the entire lease, including renewals. The rate is not available if you use five or more cars at the same time, or if you already claimed depreciation other than straight line, a section 179 deduction or special depreciation on the car. Business parking and tolls are deductible on top of the rate, while trips from home to a regular workplace remain nondeductible commuting. Unreimbursed employee travel is a different case: under the Tax Cuts and Jobs Act employees cannot claim it as a miscellaneous itemized deduction. Check your own situation with a tax professional.
Worked example at 70 cents
A driver who logged 15,000 business miles during 2025 calculates 15,000 × $0.70 = $10,500.00 as the standard mileage amount. Because 2025 has one rate, the date of each trip does not change the price, but the record still needs the miles for each business use and the year's total, which Publication 463 lists as part of an adequate record. Business parking of, say, $180.00 and tolls of $95.00 would be added separately, bringing the claim to $10,775.00 in this example. The depreciation portion shapes future years: at 33 cents a mile, the 15,000 miles reduce the car's basis by $4,950.00. If the driver later switches to actual expenses, Publication 463 requires straight-line depreciation over the car's estimated remaining life, starting from that reduced basis. Numbers here are illustrations of the arithmetic, not tax advice.
Every work mile is a deduction — if it's in your log.
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IRS mileage rate 2025 — questions
Did the IRS change the mileage rate during 2025?
No. 70 cents per business mile applied from January 1 through December 31, 2025. The next change came with IR-2025-128, which set 72.5 cents for January 2026.
Did the 2025 medical mileage rate go up with the business rate?
No. IR-2024-312 kept medical and military moving mileage at 21 cents, the same as 2024; only the business rate rose, by 3 cents.
Can I use 70 cents for my EV or hybrid in 2025?
Yes. IR-2024-312 says the 2025 rates apply to fully electric and hybrid automobiles as well as gasoline and diesel vehicles.
What is the 2025 depreciation rate inside the 70 cents?
33 cents per mile, per Notice 2025-5. You reduce the car's basis by that amount for each 2025 business mile claimed at the standard rate.
Can CatchMile calculate my 2025 mileage deduction?
No. CatchMile values drives only at the 2026 rates, so it is for logging current driving, not for reconstructing 2025. Apply the 70-cent rate to your 2025 records yourself or with a tax professional.
