IRS Mileage Rate 2025: Business, Medical and Charitable Rates Explained
Last updated 05/27/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
The IRS mileage rate is the cents-per-mile figure the Internal Revenue Service sets each year that taxpayers use to calculate deductible vehicle costs without tracking actual expenses.
The rate varies by purpose, and choosing which one applies depends on how and why you drove.
- Business mileage: The highest rate, used by self-employed workers, freelancers, and business owners who drive for work-related purposes.
- Medical and moving mileage: A lower rate available for qualifying medical trips or moves ordered by the military.
- Charitable mileage: A fixed statutory rate for miles driven in service of a qualifying nonprofit organization.
Whether you drive for deliveries, client visits, or volunteer work, the standard mileage rate can simplify your tax filing significantly. Instead of logging fuel, oil changes, and depreciation separately, you multiply your miles by a single number.
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What are the current IRS mileage rates?
For 2025, the IRS set the standard mileage rates at:
| Purpose | 2025 Rate (cents/mile) | 2024 Rate (cents/mile) |
|---|---|---|
| Business | 70¢ | 67¢ |
| Medical / Active-duty moving | 21¢ | 21¢ |
| Charity | 14¢ | 14¢ |
According to the IRS, the business rate increase from 67 to 70 cents reflects higher vehicle ownership and operating costs tracked through an annual study of fixed and variable vehicle expenses.
Who can use the standard mileage deduction?
Self-employed workers, sole proprietors, and independent contractors who use a personal vehicle for business can deduct mileage on Schedule C. Employees who receive a W-2 generally cannot deduct unreimbursed mileage after the Tax Cuts and Jobs Act of 2017 eliminated that deduction through 2025.
To qualify, you must own or lease the vehicle and choose the standard mileage method in the first year the car is placed in service. Switching to actual expenses later is permitted, but switching back has restrictions.
Standard mileage rate vs. actual expense method
The standard mileage rate is simpler, but the actual expense method can yield a larger deduction for high-cost vehicles or those driven extensively for business.
| Factor | Standard Mileage | Actual Expense |
|---|---|---|
| Record-keeping | Mileage log only | All receipts required |
| Best for | High-mileage, low-cost vehicles | Expensive vehicles, lower miles |
| Depreciation | Built into the rate | Calculated separately |
| First-year flexibility | Can switch to actual expenses later | Locks in actual expense method |
How to calculate your mileage deduction
How to calculate a mileage deduction
- Track every business mile: Use a mileage log, app, or calendar entries. The IRS requires a contemporaneous record showing date, destination, business purpose, and miles driven.
- Separate personal miles: Commuting from home to your regular workplace does not count as business mileage. Only trips beyond your primary workplace qualify.
- Multiply by the applicable rate: For 2025, multiply total qualifying business miles by $0.70. Medical miles use $0.21; charitable miles use $0.14.
- Report on the correct form: Self-employed filers report mileage on Schedule C, Part II, line 9. Medical mileage goes on Schedule A under medical expenses.
- Keep records for at least three years: The IRS can audit returns up to three years from the filing date, so retain your mileage log and supporting documentation.
A mileage tracking app such as MileIQ or Everlance automatically timestamps trips, which satisfies the IRS contemporaneous recordkeeping requirement without manual logging.
Pro Tip
If you use your car for both business and personal purposes, the deduction is limited to the business-use percentage. A vehicle used 60% for business with 15,000 total miles yields 9,000 deductible miles — not the full 15,000. Tracking trips individually rather than estimating percentages produces a more accurate and defensible deduction.
When the IRS adjusts the mileage rate mid-year
The IRS typically announces rates once per year in December for the following tax year. In unusual situations, such as the fuel spike of 2022, the agency issued a mid-year adjustment raising the business rate from 58.5 to 62.5 cents effective July 1, 2022.
When a mid-year change occurs, taxpayers must apply two different rates: one for January through June and another for July through December. Your mileage log date field makes this straightforward to calculate.
Mileage deductions for medical travel
The medical mileage rate covers trips to doctors, hospitals, pharmacies, and other qualifying medical care. According to the IRS, eligible travel must be primarily for medical care that would itself be deductible under federal income tax rules.
Medical mileage is only deductible to the extent your total medical expenses exceed 7.5% of your adjusted gross income. For most filers, this threshold eliminates the deduction entirely unless they had a high-cost medical year.
Good to know: The charitable mileage rate of 14 cents per mile is set by statute, not by the IRS’s annual cost study. Congress would have to pass legislation to change it, which is why it has remained at 14 cents since 1997 despite inflation in vehicle costs.
Frequently asked questions
Does the IRS mileage rate apply to electric vehicles?
Yes, the standard mileage rate applies to electric, hybrid, and gasoline-powered vehicles equally. The rate accounts for average vehicle operating costs, which the IRS reviews annually using data from both traditional and alternative-fuel vehicles. You cannot additionally deduct home charging costs if you use the standard mileage rate.
Can I deduct mileage if I use my car for Uber or DoorDash?
Yes. Rideshare and delivery drivers who receive 1099 income are self-employed and can deduct business mileage. Only miles driven while available for rides or actively making deliveries count — not personal trips or your commute to the area where you start accepting orders.
What if I forget to log mileage during the year?
A reconstructed mileage log created from calendar entries, GPS data, or bank statements is better than nothing, but the IRS prefers contemporaneous records. If audited, a reconstructed log is harder to defend than one kept in real time. Starting an app-based tracker going forward reduces this risk significantly.
Is the standard mileage rate better than tracking actual expenses?
It depends on the vehicle. Older, fully depreciated vehicles typically benefit more from the standard mileage rate since depreciation is already built into the per-mile figure. New, high-cost vehicles may yield a larger deduction through actual expenses, especially in the first year when bonus depreciation is available.
Do employers have to reimburse at the IRS mileage rate?
No federal law requires employers to reimburse at exactly the IRS rate. However, reimbursements at or below the IRS rate are tax-free to the employee. Amounts above the standard rate are treated as taxable wages. Several states, including California, do require reimbursement for all necessary business expenses, which effectively requires covering mileage.
Related reading on tax deductions and vehicle expenses
- IRS — covers how the Internal Revenue Service operates, what it audits, and how to respond to IRS notices.
- Tax deduction — explains what qualifies as a deductible expense and how deductions reduce your taxable income.
- Schedule C — the form self-employed filers use to report business income and expenses, including mileage.
- Tax bracket — shows how marginal tax rates work and why a higher bracket increases the value of each deduction dollar.
Key takeaways
- The 2025 IRS business mileage rate is 70 cents per mile, up from 67 cents in 2024.
- Medical and active-duty moving mileage is reimbursed at 21 cents per mile; charitable driving at 14 cents per mile.
- Self-employed workers claim the deduction on Schedule C; employees generally cannot deduct mileage under current law.
- A contemporaneous mileage log is the strongest documentation — apps that timestamp trips automatically satisfy IRS requirements.
- The standard mileage method and actual expense method cannot both be used for the same vehicle in the same year.
If you owe back taxes and are struggling to pay, a tax relief professional can help you evaluate installment agreements and other IRS resolution options. Compare vetted services at SuperMoney’s tax relief reviews.
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