IRS Mileage Increases To 70 Cents Per Mile In 2025

Last Updated 12/31/2024


The Internal Revenue Service recently announced that the reimbursement mileage rate for automobiles driven for business/employment use will increase by 3 cents in 2025, however the mileage rates for vehicles used for other purposes will remain unchanged from 2024.


Optional standard milage rates are used to calculate the deductible costs of operating vehicles for business, charitable and medical purposes, as well as for active-duty members of the Armed Forces who are moving.


Starting January 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 70 cents per mile driven for business use, an increase of 3 cents from 2024.
  • 21 cents per mile driven for medical purposes, the same as in 2024.
  • 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.
  • 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.


The rates apply to fully electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.


Businesses typically use the IRS standard mileage rate as a point of reference for reimbursing employees for the business use of their vehicles. Other options for employers are available so long as they comply with section 2802 of the Labor Code which mandates that employees be reimbursed for “all necessary expenditures or losses incurred by the employee.”  California courts and labor agencies have declared that the IRS standard mileage rate in fact fulfills this employer obligation.  Employees may opt to calculate the actual costs of using their own vehicle instead of using the standard mileage rates. Employers should ensure that their employee reimbursements account for these updated amounts. 


Questions about 2025 labor and employment law changes? Rosasco Law Group can help make sure your policies are up to date!

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