The Internal Revenue Service is increasing the "optional standard mileage rate" used to calculate tax deductions by 3 cents a mile for 2025. The big picture: The increase goes into effect Jan. 1, 2025,

The Internal Revenue Service on Thursday announced that the 2025 standard mileage rate will go up by 3 cents per mile to 70 cents for the optional mileage rate for automobiles driven for business. That's up from 67 cents a mile in 2024. The new rate kicks in beginning Jan. 1 and it would apply to 2025 tax returns that would be filed in 2026.

The IRS has announced its 2025 standard mileage rates. Standard mileage rates are used to calculate the amount of a business, moving, medical, or charitable expense.

Source: The College Investor The IRS just released their standard mileage rates for 2025. There was an increase of 3 cents from 2024 for the standard business rate, while medical, moving, and charity rates remained the same.

The Internal Revenue Service issued the 2025 optional standard mileage rates today for computing the deductible cost of operating an automobile