As we step into 2025, staying informed about the latest tax updates can help you maximize your deductions and keep more money in your pocket. One important update for the year is the IRS’s announcement of the 2025 standard mileage rates, which are used to calculate tax-deductible vehicle operating costs.

What Are the 2025 Standard Mileage Rates?
Effective January 1, 2025, the IRS has updated the standard mileage rates as follows:
Business Use: 70 cents per mile (increased from 67 cents in 2024)
Medical or Moving Purposes: 21 cents per mile (unchanged from 2024)
Charitable Driving: 14 cents per mile (unchanged from 2024)
These rates apply to all types of vehicles, including gasoline, diesel, electric, and hybrid models.
Why Does This Matter?
The standard mileage rate is an easy and widely used method for calculating the deductible cost of operating your vehicle for business purposes. For many, the increased rate for business use means higher potential deductions, translating into tax savings.
For instance: If you drive 10,000 miles for business purposes in 2025, your deduction would increase from $6,700 in 2024 to $7,000 in 2025—a $300 difference that could make an impact on your return.
How to Protect Your Deduction
To ensure you can take full advantage of this deduction, it’s essential to keep accurate and detailed mileage records. Consider using a mileage tracking app or maintaining a log that includes:
The date of each trip
The purpose of the trip
Starting and ending mileage
Total miles driven
These records are critical if the IRS ever questions your deductions.
Have Questions?
Whether you need help calculating your deductions, tracking mileage, or navigating other tax-related issues, we’re here to help. Contact a tax profession for personalized advice and support.
Stay tuned for more 2025 tax tips to help you save and stay prepared!
Disclaimer: Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.
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