On December 19, 2024, the Internal Revenue Service issued via Notice N-2025-05 the 2025 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.

The Details:

As of January 1, 2025, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:

·       70 cents per mile for business miles driven;

·       21 cents per mile driven for moving purposes;* and

·       14 cents per mile driven in service to a charitable organization.

*Applicable to members of the Armed Forces Only.

Exceptions for Moving Expenses:

The Tax and Jobs Act of 2017 suspended the deduction for moving expenses for taxable years beginning after December 31, 2017, and before January 1, 2026, except for members of the Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station. Thus, except for taxpayers that are members of the Armed Forces, the standard mileage rate provided in Notice 2025-05 is not applicable for the use of an automobile as part of a move occurring during the suspension.