IRS Announces Mileage Rate for 2025
The Internal Revenue Service (IRS) announced the 2025 standard mileage rate. The increase began on January 1 and raised the rate from 67 cents per mile to 70 cents per mile. These rates apply to electric and hybrid-electric automobiles, as well as gasoline- and diesel-powered vehicles. Next Steps for Employers The IRS rate for mileage reimbursement is an optional business standard rate that is typically used to compute the deductible costs of operating an automobile for business use, instead of tracking actual costs. Employers who are not in states where they are required by law to reimburse employees for business-related expenses, including mileage, can set any reimbursement rate, up to the IRS rate. Regardless of whether employers decide to adopt the IRS reimbursement rate, it is recommended that the organization’s reimbursement policy specifies the amount that employees will receive for mileage and that the policy is applied consistently....