Current Mileage Rate for 2025: IRS-Approved Rates and How to Apply Them to Your Tax Return

Every year, the IRS updates the mileage rates used to calculate deductions for vehicle use related to business, medical, charitable, or moving purposes. Knowing the current mileage rate for 2025 is essential for anyone who wants to claim accurate deductions and reduce their taxable income.

For self-employed workers, gig economy drivers, and professionals who use their car for work, these rates offer a straightforward method to calculate vehicle-related expenses without having to track fuel receipts, maintenance bills, or depreciation manually. In this guide, you’ll learn what the current rates are, who can use them, and how to apply them properly during tax season.

What Is the Current IRS Mileage Rate for 2025?

As of the latest IRS update, the standard mileage rates for 2025 are expected to be:

Business use: 65.5 cents per mile (subject to confirmation from the IRS)
Medical or moving purposes (active-duty military only): 22 cents per mile
Charitable driving: 14 cents per mile (fixed by law)

These rates reflect the average costs of owning and operating a vehicle, including fuel, maintenance, insurance, and depreciation. The business mileage rate is typically the highest because it accounts for full commercial use, while the medical and charity rates are lower due to legislative limitations.

These numbers are updated annually and sometimes adjusted mid-year during volatile fuel price changes, so it’s essential to check the IRS website or with your tax advisor for the most accurate figures when preparing your return.

Who Can Use the Current Mileage Rate?

The current mileage rate can be used by a variety of taxpayers, though eligibility depends on how and why the vehicle is used:

Self-employed individuals can claim mileage for business-related driving, such as visiting clients, attending meetings, or delivering goods.
Gig workers—including Uber, Lyft, DoorDash, and Instacart drivers—can also deduct business mileage.
Military members on active duty can use the moving mileage rate for permanent changes of station.
Volunteers working for registered nonprofits can claim charitable driving at the fixed IRS rate.
Patients who drive to medical appointments may qualify for the medical mileage deduction if their total medical expenses exceed the IRS threshold.

W-2 employees can no longer deduct unreimbursed business mileage on their federal taxes due to the Tax Cuts and Jobs Act of 2017, unless they fall under limited exceptions.

How to Apply the 2025 Mileage Rate to Your Tax Return

Using the current mileage rate is one of the easiest deductions to calculate—if you keep good records. Here’s how to apply it step by step:

Track all qualifying miles throughout the year. This includes the date of the trip, origin and destination, purpose, and number of miles.
Multiply total qualified miles by the applicable rate for each category.
Report the total deduction on the appropriate section of your tax return:
- For business mileage: Schedule C (Profit or Loss From Business)
- For charitable mileage: Schedule A (Itemized Deductions)
- For medical mileage: Also on Schedule A
- For moving mileage (military): Form 3903

Make sure to separate mileage by purpose. You can’t lump medical and business trips together or apply the highest rate across all categories.

Why Accurate Mileage Tracking Is Essential

The IRS requires detailed, timely, and accurate mileage logs. Failing to properly document your travel could result in rejected deductions or audit issues, even if the trips were legitimate.

Your log should include:

Date of each trip
Starting point and destination
Business or personal purpose
Total number of miles driven

This information must be recorded at or near the time of the trip—not estimated retroactively.

Many taxpayers use mobile apps like Everlance, MileIQ, or QuickBooks Self-Employed to automate this process. These apps track mileage via GPS and allow users to categorize trips for tax purposes. They also generate reports that align with IRS documentation standards.

Standard Mileage vs. Actual Expense Method

Taxpayers using their vehicle for business have a choice between using the standard mileage rate and the actual expense method.

The standard mileage rate is simpler and requires tracking only the miles driven and the business purpose. It’s best for people who want a clean, hassle-free deduction method.

The actual expense method, by contrast, requires tracking every car-related cost—fuel, maintenance, depreciation, insurance, and more—and then calculating the percentage of time the vehicle was used for business.

In most cases, small business owners and independent contractors find the mileage rate to be the more convenient option. However, those with high operating expenses may benefit more from using the actual expense method—provided they’re willing to do the accounting work.

When You Can’t Use the Current Mileage Rate

There are situations where you cannot use the standard mileage rate:

If you’ve already claimed depreciation using the actual expense method for the same vehicle
If you’re using five or more vehicles at the same time (a fleet)
If your vehicle is leased and you switched between methods
If you’re deducting commuting miles (travel between your home and your main place of work is not deductible)

Understanding these exceptions helps you stay compliant and avoid issues during tax preparation or an audit.

Tax Savings Potential with the 2025 Mileage Rate

Even a moderate amount of qualified driving can add up to serious savings. Here’s a quick illustration:

If you drive 10,000 miles for business in 2025 and the mileage rate is 65.5 cents per mile:

10,000 × $0.655 = $6,550 deduction

Assuming you’re in a 22% federal tax bracket, that’s over $1,440 in savings on your tax bill. That’s why diligent mileage tracking pays off—and why knowing the current mileage rate is so important.

Staying Ahead: Start Tracking Early

One of the best things you can do to maximize your mileage deductions is to begin tracking from January 1. Many taxpayers wait until tax season to think about deductions, but that often leads to missed miles and incomplete logs.

Starting early gives you a clean, consistent mileage record for the entire year. This ensures you get every mile you’re entitled to—and it keeps your documentation airtight if the IRS ever asks to see it.

Whether you use an app or a manual logbook, the important thing is consistency. Log your miles close to the time they occur, categorize your trips correctly, and back everything up regularly.

Conclusion

Knowing the current mileage rate for 2025 is more than just a number—it’s the foundation for one of the most accessible and powerful tax deductions available to independent workers and small business owners.

By applying the correct rate, maintaining strong records, and using the right tools to track your travel, you can simplify your taxes and significantly reduce what you owe.

Check the IRS website regularly for any rate updates, log your driving from day one, and make sure every qualifying mile is captured. It’s a simple habit with a major financial payoff.

Author Profile

Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com