How much per mile?
For expenses paid or incurred on or after January 1, 2025, the IRS optional standard mileage rates are:
- 70 cents per mile for qualified business use
- 21 cents per mile for qualified medical travel.
- 21 cents per mile for moving expenses for qualified active‑duty members of the Armed Forces only.
- 14 cents per mile for charitable service, a rate fixed by statute and unchanged for many years.
These rates apply to cars, vans, pickups, and panel trucks, including electric and hybrid vehicles.
Who Can Claim Mileage Deductions?
The mileage deduction rules differ depending on why you are driving.
- Business: Typically available to self‑employed individuals, independent contractors, and certain owners using their personal vehicle for business.
- Medical: Available if you itemize deductions and have qualifying unreimbursed medical expenses above the applicable AGI threshold.
- Moving: Limited to active‑duty Armed Forces members moving under military orders.
- Charitable: Available if you itemize and use your vehicle in service to a qualified charitable organization.
Due to the Tax Cuts and Jobs Act, most employees can no longer deduct unreimbursed employee mileage as a miscellaneous itemized deduction
Standard Mileage vs. Actual Expenses
Taxpayers generally can choose between:
- Standard mileage method: Track qualifying miles and multiply by the applicable IRS rate.
- Actual expense method: Deduct the business (or other qualifying) share of actual costs, such as gas, oil, insurance, repairs, maintenance, registration fees, lease payments, and depreciation.
If you lease a vehicle and choose the standard mileage rate, you must use that method for the entire lease term, including renewals.
To use the standard mileage rate, you generally must choose it in the first year the car is placed in service for business.
For many self‑employed drivers with moderate costs and high mileage, standard mileage is simpler and often competitive; for those with high actual vehicle costs and lower mileage, the actual expense method can sometimes produce a larger deduction.
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules are complex and subject to change; consult a qualified tax professional about your specific situation for the 2025 tax year.