Tax Tip #237

As of January 1, the standard mileage rates for the use of cars, vans, pickups or panel trucks is now:

• 70 cents per mile driven for business use. This is an increase of 3 cents from 2024.
• 21 cents per mile driven for medical purposes and 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, unchanged from 2024. 

Taxpayers can elect to calculate the actual costs of using their vehicle rather than using the standard mileage rates. 

Additional figures for taxpayers calculating deductible vehicle expenses in 2025 include:

• Depreciation under the mileage rate — 33 cents per mile.
• The maximum cost for calculating allowances under the Fixed and Variable Rate plan is $61,200 for cars, trucks and vans.
• The maximum fair market value for employer-provided vehicles first available for personal use in 2025 is $61,200.

Due to the Tax Cuts and Jobs Act, unreimbursed employee travel expenses cannot be deducted during 2018-2025, including through the business standard mileage rate.

If you have any questions, feel free to reach out to a team member for more information.