Starting January 1, 2025, the standard mileage rates are changing, which means you could get a bigger tax break on your vehicle expenses. The new rate is as follows:
• Self-Employed and Business Use: 70 cents per mile, an increase of 3 cents from the 2024 rate
These rates apply to electric and hybrid vehicles, as well as gasoline and diesel-powered cars. Taxpayers have the option to use these standard mileage rates or calculate actual vehicle expenses to determine their deductions. Keep in mind that, due to the Tax Cuts and Jobs Act, most taxpayers are no longer eligible to deduct unreimbursed work-related travel expenses.
For more information, check out IRS Notice 2025-5 for the full breakdown. If you’re tracking your miles, now’s a great time to update your records and make sure you’re getting the most out of your deductions!
Source: https://www.irs.gov/tax-professionals/standard-mileage-rates
