IRS Mileage Rate 2025: Standard Rates and How to Calculate

Q: What is the mileage rate for medical in 2025?

21 cents per mile for medical purposes, unchanged from 2024.

Q: How do I report mileage deduction on my tax return?

Use Schedule C for business mileage, or Schedule A for charitable mileage if you itemize.

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Anyone who uses a car for work knows that every mile adds up — not just in fuel, but in the deduction you can claim come tax time. The IRS just released its 2025 standard mileage rates, and if you’re self-employed or run a small business, the numbers are worth a closer look. Here’s what changed, what stayed the same, and exactly how to calculate your reimbursement.

2025 business rate: 70 cents/mile ·
2026 business rate: 72.5 cents/mile ·
2025 medical rate: 21 cents/mile ·
2025 charity rate: 14 cents/mile ·
Change from 2024 business rate: +3 cents

Quick snapshot

1Confirmed facts

2025 business rate is 70¢/mile (IRS (official rate announcement))

Medical and moving rate is 21¢/mile (IRS (official rate announcement))
Charity rate remains 14¢/mile (IRS (official rate announcement))

2What’s unclear

Future rates beyond 2026
Potential legislative changes to mileage deduction rules
How the 2025 rates compare to actual vehicle operating costs

3Timeline signal

January 1, 2025: 2025 rates take effect (IRS official announcement)
December 29, 2025: 2026 rates announced (IRS announcement)
January 1, 2026: 2026 rates become effective (IRS announcement)

4What’s next

Taxpayers should use 2025 rates for 2025 tax year deductions
Plan for 2026 increase to 72.5¢/mi business rate
Keep detailed mileage logs for each trip

Six key numbers define the 2025 mileage landscape.

Label	Value
2025 Business Rate	70 cents per mile
2026 Business Rate	72.5 cents per mile
2025 Medical Rate	21 cents per mile
2025 Charity Rate	14 cents per mile
Effective Date	January 1, 2025
Source	IRS.gov Standard Mileage Rates (IRS (official rate announcement))

How to calculate mileage reimbursement 2025?

Step-by-step calculation with example

Determine total business miles driven in 2025.
Multiply miles by the 2025 business rate of 70 cents per mile (IRS official rate announcement).
Example: 5,000 miles × $0.70 = $3,500 deduction.

Using the IRS standard mileage rate

The standard rate includes gas, oil, repairs, insurance, and depreciation (IRS Publication 463 travel expense guide).
It applies to cars, vans, pickups, panel trucks, and electric/hybrid vehicles.

What expenses can you deduct?

Standard rate method: no separate deduction for gas, oil, or repairs.
Actual expense method: deduct gas, maintenance, insurance — but keep all receipts.

The trade-off: Standard mileage is simpler; actual expenses can pay off if your per-mile costs are high, but require meticulous records.

The upshot

Self-employed drivers claiming 10,000 business miles in 2025 will deduct $7,000 — $300 more than they would have at the 2024 rate of 67¢. That’s a meaningful bump for anyone filing Schedule C.

What are the IRS rates for 2025?

Business rate: 70 cents per mile

Up 3 cents from 2024 (IRS official announcement).
Applies to gasoline, diesel, hybrid, and fully electric vehicles.

Medical and moving (military) rate: 21 cents

Unchanged from 2024 (IRS official announcement).
Moving deduction only for active-duty military members.

Charity rate: 14 cents

No change from 2024 (IRS Publication 526 charitable contributions).
Claimed as a charitable contribution, not a business expense — requires itemizing on Schedule A.

What this means: The business rate is the only mover in 2025, giving self-employed workers a slightly larger per-mile deduction compared to 2024. Medical and charity drivers see no change.

Can I deduct both mileage and gas?

Standard mileage vs. actual expenses

You must choose one method per vehicle per year — you cannot deduct both (IRS Publication 463).
The standard rate already covers fuel costs.

When you cannot deduct both

If you use standard mileage, no separate gas deduction.
If you use actual expenses, you can deduct gas, but you must track every gallon.

Choosing the right method

Standard rate: best for simplicity and lower administrative burden.
Actual expenses: better for high-cost vehicles or when operating costs exceed the standard rate.

The catch: Once you switch to actual expenses, you may not be able to go back to standard mileage on that vehicle — plan carefully.

What to watch

If you lease a vehicle and use standard mileage, you cannot later switch to actual expenses without IRS approval — the choice has long-term implications.

Is mileage going up in 2026?

2026 rates announced by IRS

Business rate rises to 72.5 cents per mile, up 2.5 cents (IRS 2026 rate news release).
Medical rate drops to 20.5 cents per mile.
Charity rate stays at 14 cents.

Increase of 2.5 cents for business

Announced December 29, 2025.
Effective January 1, 2026.

Historical context from 2025

2025 business rate: 70¢; 2026: 72.5¢ — a 3.6% increase.
Medical rate: a rare half-cent decrease.

The pattern: Business rates continue their upward trend, while medical rates edge down slightly. The charity rate remains frozen for the third year.

What is the mileage rate in 2026?

2026 business rate: 72.5 cents

Effective January 1, 2026 (IRS 2026 announcement).

2026 medical rate: 20.5 cents

Down half a cent from 2025 (IRS 2026 rate breakdown).

Charity rate remains 14 cents

No change from 2025 or 2024.

Three years of rates, one clear trend.

Year	Business	Medical/Moving	Charity
2024	67¢	21¢	14¢
2025	70¢	21¢	14¢
2026	72.5¢	20.5¢	14¢

Why this matters: If you drive for business, each year’s increase directly boosts your deduction. For medical and charity drivers, the numbers are less volatile — but still worth tracking.

Timeline

January 1, 2025: 2025 standard mileage rates take effect: 70¢ business, 21¢ medical, 14¢ charity.

December 29, 2025: IRS announces 2026 rates: 72.5¢ business, 20.5¢ medical, 14¢ charity (IRS 2026 rate news release).

January 1, 2026: 2026 rates become effective.

Confirmed facts

2025 business rate: 70¢/mi (IRS official rate announcement)
2026 business rate: 72.5¢/mi (IRS 2026 rate news release)
Charity rate unchanged at 14¢/mi (IRS official announcement)

What’s unclear

Future rates beyond 2026
Potential legislative changes to mileage deduction rules

“For 2025, the standard mileage rate for business use is 70 cents per mile.”

— IRS (official news release, December 2024)

“The 2025 business rate of 70 cents per mile reflects ongoing changes in vehicle operating costs.”

— Cornell University Finance (official rate summary, Cornell University Finance (university financial services))

For self-employed workers and small business owners, the 2025 mileage rate offers a modest increase in your potential deduction. The choice is clear: track your miles diligently, use the standard rate for simplicity, and plan for the 2026 uptick. If you drive for medical or charitable reasons, the rates are stable — but don’t forget to keep a log.

Additional sources

mileagewise.com, irs.gov, jrcwd.org, farmlaw.ces.ncsu.edu, hrblock.com, everlance.com, criadv.com

Comparing the 2025 rates with the 2024 federal mileage rate helps taxpayers see how reimbursement figures have shifted.

Frequently asked questions

How to calculate a mileage claim?

Multiply your total business miles driven in 2025 by 70 cents. For example, 10,000 miles × $0.70 = $7,000 deduction.

What is the mileage rate for medical in 2025?

21 cents per mile for medical purposes, unchanged from 2024 (IRS).

Can I use standard mileage rate if I lease a car?

Yes, the standard mileage rate is available for leased vehicles as long as you meet the IRS requirements (IRS Publication 463 travel expense guide).

How do I report mileage deduction on my tax return?

Use Schedule C (Profit or Loss from Business) for business mileage, or Schedule A for charitable mileage if you itemize.

What records do I need to keep for mileage deduction?

Keep a log with date, miles driven, destination, business purpose, and vehicle information (IRS Publication 463 travel expense guide).

Is there a mileage rate for moving in 2025?

Yes, 21 cents per mile, but only for qualified active-duty military members (IRS).

About the author

James Benjamin Parker Hayes

Our desk combines breaking updates with clear and practical explainers.

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