IRS increases the standard mileage rate for business use in 2025; key rate increases 3 cents to 70 cents per mile

[Elrod]

WASHINGTON — The Internal Revenue Service today announced that the optional standard mileage rate for automobiles driven for business will increase by 3 cents in 2025, while the mileage rates for vehicles used for other purposes will remain unchanged from 2024.

Optional standard milage rates are used to calculate the deductible costs of operating vehicles for business, charitable and medical purposes, as well as for active-duty members of the Armed Forces who are moving.

Beginning Jan. 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

70 cents per mile driven for business use, up 3 cents from 2024.

21 cents per mile driven for medical purposes, the same as in 2024.

21 cents per mile driven for 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, equal to the rate in 2024.

https://www.irs.gov/newsroom/irs-increases-the-standard-mileage-rate-for-business-use-in-2025-key-rate-increases-3-cents-to-70-cents-per-mile

[mcb39]

What do they know that we don't know?  Gas prices are actually down around here.

[jklcpa]

14 minutes ago, mcb39 said:

What do they know that we don't know?  Gas prices are actually down around here.

It's not only gas. All other costs that factor in have increased with depreciation being the largest component, and vehicle prices aren't down. Other items of insurance, maintenance and repairs all have increased too with the latter due to materials and labor costs. 

[TexTaxToo]

The basis reduction or depreciation component went from 30 to 33 cents.  So the remainder stayed constant at 37 cents.

[Lee B]

15 hours ago, TexTaxToo said:

The basis reduction or depreciation component went from 30 to 33 cents.  So the remainder stayed constant at 37 cents.

The remainder remaining constant is curious since as Judy pointed out the cost of vehicle insurance, parts and repairs have increased.