Effective 01/01/2025, the IRS has increased the standard business mileage rate to 70¢ per mile (from 67¢ per mile in effect since 1/1/24). These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles. The standard medical mileage rate remains at 21¢ per mile. These new rates apply to mileage reimbursements paid to an employee on or after January 1, 2025 with respect to transportation expenses paid or incurred by the employee on or after January 1, 2025.

The rate used for charitable deduction purposes, set by statute rather than IRS, remains at 14¢ per mile.