The Internal Revenue Service (IRS) has announced the optional standard mileage rate used to calculate the costs of operating a car, van, pickup truck, or panel truck for business purposes in 2025. The 2025 rates for automobiles used for charitable, medical, or moving purposes were also announced.

The new rates beginning January 1, 2025, are:

• 70 cents per mile for business miles driven, up 3 cents from the 2024 rate.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, unchanged from 2024.
• 14 cents per mile driven for gratuitous services to a charitable organization; the rate is set by statute and remains unchanged from previous years.

The TCJA suspends all itemized deductions including unreimbursed employee travel expenses for taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026. Therefore, the business standard mileage rate can’t be used to claim an itemized deduction for unreimbursed employee travel expenses during the suspension. For more details, see Rev. Proc. 2019-46 (PDF).

You can read the complete IRS announcement for more information or specifics on how and when to apply the mileage rate expense.