Notice 2025-5: Standard mileage rates for 2025

The IRS today released Notice 2025-5 providing the standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving purposes in 2025.

Notice 2025-5 provides that beginning January 1, 2025, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 70 cents per mile driven for business use (up 3 cents from 2024)
• 21 cents per mile driven for medical purposes (unchanged from 2024)
• 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces (unchanged from 2024) (the deduction for moving expenses has been suspended for taxpayers other than active-duty members of the U.S. Armed Forces)
• 14 cents per mile driven in service of charitable organizations (unchanged from 2024)

In addition to providing the standard mileage rates, Notice 2025-5 provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.

For automobiles a taxpayer uses for business purposes, 33 cents of the 70 cents per mile rate in 2025 is attributable to depreciation expense (up from 30 cents per mile for 2024).

Read a related IRS release—IR-2024-312 (December 19, 2024)