IRS Increases Business Standard Mileage Rate to 70 Cents Per Mile Effective Jan. 1, 2025
On December 19, 2024, the IRS issued the 2025 business standard mileage rate: 70 cents per mile, up 3 cents from 67 cents in 2024. Issued in IR-2024-312, it applies to business use of a personal vehicle (cars, vans, pickups, and panel trucks) and goes into effect Jan. 1, 2025.
The IRS also announced other standard mileage rates for 2025 as follows (all listed below are unchanged from 2024):
- 21 cents per mile driven for medical purposes
- 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces
- 14 cents per mile driven in service of charitable organizations
What is the Standard Mileage Rate?
The standard mileage rate is used to compute the costs that are deductible by businesses and self-employed individuals for operating an automobile for business use, as an alternative to tracking actual costs. Employers are not required by law to, but often use the standard mileage rate to pay tax-free reimbursements to employees who use their own vehicles for business.
We Can Help You Succeed
J. Kent Staffing can help you with your staffing needs or your job search. Reach out to us today to start the process.