As we roll into the new year, it’s a good idea to let your clients know about the IRS updates to the standard mileage rates for 2025! These changes could make a difference in how they track business expenses and claim deductions. 

For 2025, the IRS has raised the standard mileage rate for business use by 3 cents. Starting January 1st, the rate will be 70 cents per mile, up from 67 cents in 2024. This applies to cars, vans, pickups, and panel trucks used for business purposes.

The rates for other uses—like medical, moving, and charitable driving—haven’t changed:

• Medical and moving: 21 cents per mile
• Charitable: 14 cents per mile (set by law)

These rates apply to all types of vehicles, including electric, hybrid, gasoline, and diesel-powered.

To make tracking mileage easier, your client can use tools that simplify the process and ensure accuracy. Apps like MileIQ, TripLog, or QuickBooks Mileage Tracker are great options. These automate tracking, categorize trips, and even generate reports, making life easier for clients who want to stay organized and compliant.

Keep in mind, however, that the standard mileage rate isn’t the only option. Your clients can also calculate their actual vehicle costs if that works out better for them. The 2025 rates and additional details can be found in IRS Notice 2025-5.

Sharing this info helps your clients make smart decisions about their expenses and taxes as they start the year!

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Source: https://www.irs.gov/newsroom/irs-increases-the-standard-mileage-rate-for-business-use-in-2025-key-rate-increases-3-cents-to-70-cents-per-mile