According to the IRS mileage rates for 2025, you get a whopping 3 extra cents a mile for business use. But it’s more of the same for medical, charitable, and military moving purposes.
The IRS’s new mileage rates, which started Jan. 1, 2025, are:
- 70 cents per mile for business use, 3 cents more than last year;
- 21 cents per mile for medical purposes, same as 2024;
- 14 cents per mile when driving in the service of charitable organizations, same as 2024; and
- 21 cents per mile driven for moving purposes for qualified active-duty military members , same as last year.
If you use your vehicle solely for business purposes or a mix of business and personal, you can find the IRS’s rules for business use of a car here. The rates apply all vehicles, whether they’re completely electric, hybrid, gasoline, or diesel-powered.
Other Vehicle Expense Tips
- You can also always calculate your vehicle’s actual costs, rather than standard mileage rates.
- If you own your vehicle, for the first year your vehicle is available for business use, you have to use the standard rate. In subsequent years, you can then use the standard rate or actual expenses.
- If you lease your vehicle, you can choose between the standard or actual expense option. But if you opt to use the standard mileage rate, you can’t switch to the actual expense rate later.
If you have questions about IRS deductions or rules, please let us know.