The IRS just increased the standard mileage rate for employees. Here's how it could save you money


If you use your vehicle for work, there’s good news: your reimbursement check or tax deduction could be on the rise this year.

WASHINGTON — The Internal Revenue Service (IRS) has announced an increase in the standard mileage rate for business travel, which could mean larger reimbursement checks for some employees or a reduction in their tax obligations.

Earlier this week, the IRS revealed that the new standard mileage rate would take effect starting January 1st. Since that day was a federal holiday, with many businesses closed, most commuters will begin to notice the updated rate when they resume work on Friday.

For the year 2025, the standard mileage rate for business-related travel in cars, trucks, vans, or other vehicles has been adjusted to 72.5 cents per mile, reflecting a 2.5 cent increase from the previous rate of 70 cents.

This adjustment aims to counter rising inflation and applies to a range of vehicles, including traditional gasoline and diesel models, as well as electric and hybrid cars used for business purposes.

This change comes at a time when fuel prices are on a downward trend. Around this time last year, the average price of a gallon of gas was approximately $3.06. Currently, that average has fallen to about $2.83, as reported by AAA.

Do employers have to use the standard rate? 

The standard mileage rate is optional, but suggested by the federal government. Many employers who give reimbursement per mile, such as restaurants with delivery drivers, use the standard rate to determine what to compensate their drivers for using their own car. 

But for employees who don’t get a per-mile reimbursement, there’s still a way to get cash back from using a personal car for work. When filing taxes, employees can estimate how much they drove for work, applying the standard mileage rate to potentially get some money back. 

People who use their car for work don’t have to use the standard rate though. They may instead calculate the actual costs of using their vehicle when it comes time for tax season. 

The rates for some related activities have also changed in the new year, according to the IRS.

  • 20.5 cents per mile driven for medical purposes, down a half cent from 2025.
  • 20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
  • 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.
You May Also Like
Netflix series hunts for actors with upstate New York accent

Netflix Casting Call: Seeking Authentic Upstate New York Accents for Upcoming Series

A fresh series from Netflix is in the works, featuring Maya Hawke…
Coast Guard releases new photos of sailboat seized in missing American's Bahamas disappearance case

Husband of Missing American Had Expensive Thermal Camera on Boat, Friend Reveals It Went Unused

A close associate of Brian Hooker has revealed that the husband of…
Jacob Frey criticized for remembering George Floyd on Memorial Day, six years after death sparked riots

Jacob Frey’s Memorial Day Tribute to George Floyd Sparks Debate Six Years After Tragic Death

On Monday, Minneapolis Mayor Jacob Frey found himself at the center of…
Veterans gather for downtown Chicago protest against Iran war, Donald Trump administration actions at Vietnam Memorial

Veterans Unite in Downtown Chicago to Protest Iran Conflict and Trump Administration Policies at Vietnam Memorial

In the heart of Chicago, a city known for its vibrant history…
Body of missing Northern Kentucky University student Murry Alexis Foust found, police in Covington, Kentucky say

Tragic Discovery: Missing NKU Student Murry Alexis Foust Found Deceased in Covington

In a tragic development, the body of Murry Alexis Foust, a student…
Mackenzie Shirilla boasted about sickening prison nickname after she killed 2 people in crash, jailhouse lover reveals

Mackenzie Shirilla’s Disturbing Prison Nickname Uncovered by Jailhouse Lover Following Deadly Crash Conviction

Mackenzie Shirilla, infamously known as the “Hell on Wheels” murderer, has apparently…
NorCal officer Bianca Camacho reassigned amid excessive force claims as new video of violence surfaces

Northern California Officer Bianca Camacho Reassigned Following Allegations of Excessive Force and Emergence of New Video Evidence

The community of Fairfield, California, is expressing mounting anger after a local…
Knicks fans ticked at Taylor Swift, Travis Kelce rooting against team ahead of NYC nuptials

Knicks Fans Unhappy with Taylor Swift and Travis Kelce’s NYC Wedding Plans Amid Team Rivalry

It seems Taylor Swift’s standing in New York City might be taking…
Ghouls haunt evacuated Orange County blast zone — cops make multiple arrests

Authorities Make Multiple Arrests as Unlawful Trespassers Emerge in Evacuated Orange County Blast Zone

In the wake of a toxic tank leak that led to the…
Crazy video shows mob ransack NYC Scientology church as 3 busted for possible social media stunt

Viral Video Captures Chaotic Moment as Mob Storms NYC Scientology Church in Alleged Social Media Prank, Resulting in Three Arrests

On Monday, three individuals were apprehended on hate crime allegations for reportedly…
'He lived for his kids' | Family of Colorado man who died on Manitou Incline remembers him as loving dad

Heartfelt Tribute: Colorado Dad’s Legacy of Love and Devotion on Manitou Incline

Nick Jogolev, a devoted husband and father, tragically passed away this past…
Cuomo rips fellow Dems for putting up 'incapable' Joe Biden in 2024

Cuomo Criticizes Democratic Party’s Decision to Back Joe Biden for 2024 Presidential Race

Former Democratic Governor Andrew Cuomo criticized the Democratic Party on Sunday for…