Standard Mileage Rates Increase for 2025

As of December 19^th, 2024, the IRS issued the 2025 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. (Notice IR2024-312).

Beginning January 1^st, 2025, the standard mileage rates for the use of a vehicle will be:

The 2025 optional standard mileage rate for businesses will increase to 70 cents per mile, up by 3 cents per mile from the 2024 mileage rates. The standard mileage rate for medical, as well as specifically allowed moving purposes, has remained the same. Each year, these two rates are adjusted based on an annual study of various costs of operating an automobile. The standard mileage rate for charitable service will also remain the same at 14 cents per mile since this rate is set by statue.

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

As always, taxpayers continue to have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates. It also is essential to know that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses and cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

These new standard mileage rates should be incorporated when filing for the 2025 tax year.

If you need any help determining which changes affect your business, we would be happy to assist you. Please do not hesitate to call our office or email your respective tax preparer for help.

GRIFFING & COMPANY, P.C.

(281) 491-8866 Fax (281) 491-8998

info@griffing.com

www.griffing.com