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


IRS Boosts Standard Mileage Rate: Discover How This Change Can Save You Money on Business Travel

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

DFW Airport Cancels Planned Muslim Foot-Washing Stations After Texas Governor Pushback - Internewscast Journal

DFW Airport Cancels Planned Muslim Foot-Washing Stations After Texas Governor Pushback

Texas Gov. Greg Abbott is facing mounting political pressure at home —…
Trump-Linked Crypto Venture World Liberty Trust Wins Bank Status in Historic First for a President - Internewscast Journal

Trump-Linked Crypto Venture World Liberty Trust Wins Bank Status in Historic First for a President

A national banking regulator appointed by Donald Trump has given conditional approval…
Luigi Mangione Sentencing: When Could He Leave Prison? - Internewscast Journal

Luigi Mangione Sentencing: When Could He Leave Prison?

Mangione, who is now 28, could leave prison sometime between ages 52…
Georgia CEO Todd Burkhalter Sentenced for $380M Ponzi Scheme - Internewscast Journal

Georgia CEO Todd Burkhalter Sentenced for $380M Ponzi Scheme

The CEO of a Georgia financial advising firm was sentenced Friday to…
Bodycam Video Shows Irvine Police Shooting Autistic Man Holding Knife - Internewscast Journal

Bodycam Video Shows Irvine Police Shooting Autistic Man Holding Knife

Newly released police bodycam video shows the moments before officers fatally shot…
Kate Douglass Shatters 50-Meter Freestyle World Record in Pan Pacific Prelims - Internewscast Journal

Kate Douglass Shatters 50-Meter Freestyle World Record in Pan Pacific Prelims

August 15, 2026 / 3:01 PM EDT / AP Kate Douglass delivered…
San Diego Teen Arrested After Viral Video Shows Alleged U-Haul Stunts - Internewscast Journal

San Diego Teen Arrested After Viral Video Shows Alleged U-Haul Stunts

What may have started as a thrill-seeking joyride ended with an 18-year-old…
Police Release Images of Looting Mob Suspected in Two LA AutoZone Break-Ins Within 24 Hours - Internewscast Journal

Police Release Images of Looting Mob Suspected in Two LA AutoZone Break-Ins Within 24 Hours

Authorities are searching for 16 suspects after an East Los Angeles AutoZone…
Florida Teacher Admits Years of Inappropriate Chats With Former Student - Internewscast Journal

Florida Teacher Admits Years of Inappropriate Chats With Former Student

A Florida middle school teacher has been arrested after authorities said he…
Brazen LA Trash Can Bandits Drag Huge Bins From Moving Car - Internewscast Journal

Brazen LA Trash Can Bandits Drag Huge Bins From Moving Car

In Los Angeles, it seems even the recycling bins can become targets.…
Abbott Acts as DFW Airport Removes Islamic Foot-Washing Area - Internewscast Journal

Abbott Acts as DFW Airport Removes Islamic Foot-Washing Area

Texas Gov. Greg Abbott on Friday ordered a review of state grant…
Former Syrian President Assad sentenced to death in absentia

Former Syrian President Bashar al-Assad Sentenced to Death in Absentia

A Syrian court on Tuesday sentenced former President Bashar Assad and his…