The IRS has released (Notice 2025-5) the 2025 standard mileage rates. The rates are used to determine the deductible costs of using a vehicle for business, charitable, medical, or moving purposes. The new rates are effective January 1, 2025. Note that the rates apply to electric, hybrid, gas, and diesel-powered vehicles.
The new rates are as follows, compared to the 2024 rates:
| 2025 | 2024 | |
| Business Use | 70 cents per mile | 67 cents per mile |
| Medical and Moving Purposes | 21 cents per mile | 21 cents per mile |
| Charitable Use | 14 cents per mile | 14 cents per mile |
For taxpayers who use a vehicle for business purposes, the amount of the standard mileage treated as depreciation is 33 cents per mile. This amount was 30 cents per mile in 2024. For those who use a fixed and variable rate plan, the maximum standard automobile cost that may be used in computing the allowance is $61,200. This amount was $62,000 in 2024.
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