We wanted to remind employers that on December 19, 2024, the Internal Revenue Service (IRS) announced the 2025 optional standard mileage rates for calculating the deductible costs of operating an automobile for various purposes.

• These rates are used for business, charitable, medical, and moving purposes, including for active-duty Armed Forces members.

Comparison of 2024 and 2025 Standard Mileage Rates:

• Business Use:
  • 2024: 67 cents per mile (up 1.5 cents from 2023)
  • 2025: 70 cents per mile (up 3 cents from 2024)

• Medical Purposes:
  • 2024: 21 cents per mile (decrease of 1 cent from 2023)
  • 2025: 21 cents per mile (unchanged from 2024)

• Moving Purposes (for qualified active-duty members of the Armed Forces):
  • 2024: 21 cents per mile (decrease of 1 cent from 2023)
  • 2025: 21 cents per mile (unchanged from 2024)

• Charitable Organizations:
  • 2024: 14 cents per mile (unchanged from 2023)
  • 2025: 14 cents per mile (unchanged from 2024)

These rates apply to all types of vehicles, including fully electric, hybrid, gasoline, and diesel-powered automobiles.

The only change for 2025 is the increase in the business mileage rate, which rises by 3 cents to 70 cents per mile. All other rates remain the same as in 2024.

For additional information:

• IRA News Release
• Notice 2025-5 
• IRS Optional Standard mileage rates
• IRS issues standard mileage rates for 2024 to 67 cents a mile (VensureHR)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.