Every year, the IRS releases a set of standard mileage rates for tax deduction purposes. Many businesses use the federal rate for business to reimburse employees for personal vehicles. Here is your guide to the current mileage rate, past years' mileage rates, and ways to track mileage for taxes.
In December of 2024, the IRS released its standard mileage rates for 2025. The current mileage rates are:
These standard mileage rates exist to help individuals and businesses estimate vehicle expenses for tax purposes. In the spring of 2026, individuals will file this year's taxes. Self-employed individuals will be able to write off vehicle expenses using the 2025 mileage rate.
Businesses may also write off vehicle costs using the federal mileage rate. Examples would be businesses that operate a fleet of company vehicles and businesses that pay mileage reimbursements.
For businesses that reimburse mileage, the standard rate is not the best rate to use. Many organizations will do better to optimize their rate instead.
Individuals and businesses filing taxes this year will use the current mileage rate for 2024. They will total all their business mileage for 2024 and multiply it by that year's rate (see below).
Individuals who plan to deduct mileage on next year's taxes should record that mileage throughout the current year. They can use a mileage log sheet that includes dates, trip destinations, business purposes, and trip mileage. Or they can use a mileage app that automatically tracks miles driven. Businesses may either provide a mileage log for taxes or a mileage tracking app to employees.
The standard mileage rates for 2024 were as follows:
If you are filing taxes in the spring of 2025, use these rates to determine the tax deduction for your vehicle expenses. Remember that only self-employed individuals and businesses can deduct vehicle expenses. Employees cannot deduct 2024 mileage on their taxes.
Each year the IRS releases a new set of standard federal mileage rates. In some years, the rates may change mid-year as a result of volatile prices.
The 2023 IRS mileage rates are as follows:
The federal mileage rate for 2022 changed mid-year in response to a spike in fuel prices.
This means that the 2022 mileage reimbursement rate for businesses jumped mid-year, upsetting budgets. Businesses that reimbursed mileage at the government mileage rate in 2022 had to stay responsive to increasing costs. This lesson can help businesses in 2025 and beyond to remember to stay prepared for mid-year cost increases.
In 2022 the medical/moving rate also had a mid-year change, moving from 18 cents per mile to 22 cents per mile. The charitable rate remained unchanged at 14 cents per mile.
The 2021 mileage rates stayed the same throughout the entire year. The standard mileage rates for 2021 involved a decrease in the federal mileage rate from the previous year:
The 2020 mileage rate for business was 57.5 cents per mile. For medical and military moving, the rate was 17 cents per mile. For charitable purposes it was 14 cents per mile.
Both the business rate and the medical/military moving rate went down from the 2019 rates. The 2019 business mileage rate was 58 cents per mile, and the medical/military rate was 18 cents per mile.
Whether you track mileage for taxes or reimbursements, you need a way to record it accurately. Many workers and managers search online for a mileage template or spreadsheet. However, a mileage log that requires manual entry of numbers and information requires lots of time.
A better method to keep track of business mileage is a mileage tracking app. Many of the best apps include a hands-free mode that records mileage as you drive. You later can edit it and add any additional trip information.
As you look at different mileage apps on the market, consider the following apps by mBurse.
mLog: This app accurately records mileage hands-free and works well for both mileage reimbursements and fleet mileage tracking. Users find it easy to navigate and stable.
TurnSignal: If your organization uses a CRM like Salesforce, consider the TurnSignal app. This mileage tracking app integrates with your CRM and increases use of the CRM.
Paying the current mileage rate makes sense for many businesses that reimburse mileage. However, employees incur costs at different rates. These costs differ because some people work in more expensive places than others and some drive more than others.
A standard rate like the government mileage rate for 2025 does not distinguish between costs in different parts of the country. Similarly, a standard rate assumes an average annual mileage of 12,000 to 14,000 miles. But drivers who drive a lot more or a lot less may not fit the standard business rate.
These differences explain why many businesses have switched to a different federal mileage rate. The fixed and variable rate approach, also known as FAVR, works better to bridge cost differences. FAVR plans work well for organizations with employees spread across the country or who drive varying amounts.