The standard business mileage rate has increased for 2025

If your business relies on driving – whether for sales calls, deliveries, or service visits – you’ve probably noticed that fuel costs can add up fast. Even small shifts in gas prices can have a real impact, which is why the IRS updates the standard business mileage rate each year. 
The 2025 rate is now in effect, and while a few cents per mile might not seem like much, the change can influence tax deductions, reimbursements, and overall travel expenses in ways that are worth paying attention to.

Why the mileage rate changes

The IRS doesn’t set the mileage rate based on gas prices alone, though that’s often the headline-grabber. Instead, it’s designed to approximate the full cost of owning and operating a vehicle for business use. That includes fuel, of course, but also wear and tear.
Each year, the IRS reviews data on these costs and adjusts the rate accordingly. If there’s a big enough change, like a sharp jump in gas prices, the agency can even issue a midyear update, though that doesn’t happen every year.

The 2025 mileage rate: a slight increase

For 2025, the standard business mileage rate is 70 cents per mile, up from 67 cents in 2024. That’s a 3-cent increase, reflecting the steady rise in vehicle-related costs. Please read more at: The standard business mileage rate has increased for 2025