IRS Mileage Rate 2025: Are You Leaving Money on the Table With Your Tax Deductions?
Do you drive for work, business, or even medical appointments? If so, 2025 could be the year you boost your tax refund just by tracking your miles. The IRS has released new mileage rates for 2025, and knowing how to use them could mean hundreds (or even thousands) of dollars back in your pocket.
What’s the Standard Mileage Rate for 2025?
Business Use: 67 cents per mile
Medical or Moving (active-duty military): 21 cents per mile
Charitable Service: 14 cents per mile (unchanged)
These rates apply to miles driven in your own vehicle for eligible purposes from January 1, 2025, onward.
Who Can Deduct Mileage?
Self-employed workers and business owners: Can deduct business mileage on Schedule C
Employees: Only if unreimbursed expenses apply (rare after recent tax law changes)
Medical and charitable mileage: Available for those who itemize deductions
Real-World Example
Meet Tony, a freelance consultant in Texas. By carefully logging every client visit, errand, and business trip, he racked up 9,000 business miles in 2025. At the new rate, that’s a $6,030 deduction—lowering his taxable income and saving serious money at tax time.
Practical Tips to Maximize Your Deduction
Keep a mileage log: Use an app or a notebook—records should include date, purpose, and miles driven.
Save receipts: Especially for tolls, parking, or maintenance tied to business use.
Double-check the rules: The IRS requires documentation—don’t estimate or “guesstimate.”
Combine trips when possible: Maximizing efficiency can also increase your deduction.
FAQ: IRS Mileage Deduction 2025
Q: Can I deduct commuting miles?
A: No, daily trips between home and your main workplace are not deductible.
Q: What if I use more than one vehicle?
A: Track mileage for each separately—you may choose the standard rate or actual expenses, but not both for the same vehicle.
Q: Do I have to use the standard rate?
A: No, you can use actual expense method if you keep detailed records, but most find the standard rate simpler.
Q: What if I miss some trips?
A: Estimate only as a last resort—good records are key in case of an audit.
Whether you’re a gig worker, entrepreneur, or volunteer, the 2025 mileage rate can be a valuable tool for maximizing your tax savings. Don’t let those miles go unclaimed!
