IRS Standard Mileage Rate Increased for 2025

The IRS standard mileage rate for business driving in 2025 is 70¢ per mile (3¢ higher than in 2024). The rate applies to fully-electric and hybrid vehicles, as well as gas and diesel-powered vehicles. If the standard mileage rate is used, the basis of the vehicle is reduced by a deemed depreciation rate, which is 33¢ per mile in 2025 (also 3¢ higher than in 2024). Reminder: Using the standard mileage rate does not obviate the need for substantiating driving; it only covers the cost. Be sure to note your vehicle’s odometer to start the new year right. #IdeaoftheDay