The IRS Standard Mileage Reimbursement Rates are on the Rise for 2025
Posted December 20, 2024

Inquiring minds about mileage rates will be happy to learn of the following new rates that came out December 19, 2024:

Beginning Jan. 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• 70 cents per mile driven for business use, up 3 cents from 2024.
• 21 cents per mile driven for medical purposes, the same as in 2024.
• 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.
• 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.

Payment of the IRS standard rates noted above is deemed to be reasonable and sufficient reimbursement. If the employer chooses to pay rates lower than the standard IRS rates, the employer must be able to prove that the chosen rates fully compensated employees for their travel-related costs (including fuel, insurance, repairs and depreciation). Remember that providing a fuel card is not considered sufficient reimbursement, as fuel is only one component of reimbursable travel expenses.

You can find additional information about the 2025 IRS rates here.

For questions regarding reimbursement of employee expenses, or assistance with other employment law issues, contact the attorneys at LightGabler LLP..

Previous Page