Need to know the mileage rate? Get the official 2025 figures, learn how to use them for taxes and reimbursements, and discover if you qualify. It’s simpler than you think!
What is the IRS Standard Mileage Rate?
The mileage rate, also called the IRS Standard Mileage Rate, is a set amount per mile the IRS uses. You can use this rate to figure out how much you can deduct for using your car for certain things. This includes business trips, medical travel, helping charities, or moving for work if you are active-duty military. It makes figuring out your vehicle costs easier than tracking every single expense.
How the Mileage Rate Works
The IRS sets a new standard mileage rate each year. This rate covers the cost of owning and running your car. Think of costs like gas, oil changes, tire wear, and even the cost of the car breaking down or losing value over time.
Instead of keeping track of every gallon of gas or every time you get an oil change, you can just count your eligible miles. Then, you multiply the number of miles by the standard mileage rate for that year. This gives you your deduction amount or the amount your employer can pay you back tax-free. This is a huge help for small business owners and people who use their cars a lot for work.
Did you know that in 2025, the mileage rate jumped? It’s now 70 cents for business use! That’s one of the biggest increases we’ve seen. This shows how much car costs have gone up. The IRS explains more about this on their official website: Standard Mileage Rates | Internal Revenue Service.
