IRS Increases 2025 Standard Mileage Rates
Published December 20, 2024
The Internal Revenue Service (IRS) has released Notice 2025-5 providing the 2025 standard mileage rates. Beginning January 1, 2025, the standard mileage rates for the use of a car (van, pickup or panel truck) will be:
- 70 cents per mile driven for business, up from 67 cents in 2024
- 21 cents per mile driven for medical or moving purposes, unchanged from 2024
- 14 cents per mile driven in service of charitable organizations, unchanged from 2024
Beginning January 1, 2025:
- A taxpayer must use 33 cents per mile as the portion of the business standard mileage rate treated as depreciation.
- $61,200 is maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.
- For employer-provided vehicles, employers may use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. $61,200 is the maximum fair market value (FMV) of cars, trucks and vans first made available to employees for personal use (down from $62,000 in 2024).