The 2025 federal mileage reimbursement rates have arrived. These rates are issued by the Internal Revenue Service (IRS) to help drivers calculate costs for operating vehicles for business, charitable, medical, or moving purposes. In short, the business mileage rate increased 3 cents for business travel. All other rates remained the same.
2025 IRS Mileage Reimbursement Rates
Beginning January 1, 2025, standard mileage rates for the use of a car, van, pickup, or panel truck changed to:
- 70 cents per mile driven for business purposes (up 3 cents from the 2024 rate)
- 21 cents per mile driven for medical purposes (same as 2024)
- 21 cents per mile driven for moving purposes for qualified active-duty military members (same as 2024)
- 14 cents per mile driven in service of charitable organizations (same as 2024)
Business leaders can use these mileage rates to calculate how much to reimburse employees who use their own cars for business purposes. As always, taxpayers also have the option to calculate the actual costs of using their vehicles, instead of using the standard mileage rates. For more information, please refer to the IRS press release.
How Are Rates Determined?
The charitable use mileage rate is set by statute and hasn’t changed for more than two decades. According to the IRS, “the mileage rate for business use is based on an annual study of the fixed and variable costs of owning a vehicle.” For medical and moving purposes, it’s based on variable costs from the annual study.
How Paycor Helps
Streamline mileage tracking and reimbursement with Paycor Expense Management software. Through Paycor Mobile, employees can accurately capture trip data, including date, distance, and duration. Expense reports are submitted anywhere, anytime via the app. The best part is Expense Management is integrated into Paycor’s fully unified HR and Payroll platform. See it in action with a guided product tour. read, extract, and populate this information to their expense reports. Submit expense reports anywhere, anytime via the Paycor Mobile App.
