Standard Mileage Rate – Simple Guide for 2025

If you drive a car for work, you’ll hear about the "standard mileage rate" a lot. It’s the amount the tax code lets you deduct for every mile you travel on business. Using it correctly can lower your tax bill without the hassle of tracking every single expense.

How the Rate Is Set

The IRS reviews fuel prices, vehicle maintenance costs, and insurance trends each year. Based on that data, it publishes a per‑mile number in December that kicks in on January 1. For 2025 the rate is 65 cents per mile for regular vehicles and 58 cents for trucks. These figures apply whether you own the vehicle or lease it.

Why does the IRS use a flat rate? It saves you from keeping receipts for gas, oil changes, and repairs. Instead, you just log the miles you drive for business and multiply by the rate. The calculation is quick, auditable, and works for most small‑business owners.

Practical Ways to Use the Rate

First, log your trips. A simple spreadsheet or a mileage‑tracking app does the job. Record the date, starting point, destination, and purpose of each drive. At the end of the year, total the miles and multiply by 0.65 to get your deduction.

If you use the car for both personal and business trips, only the business miles count. Separate the two in your log and double‑check the numbers before filing. The IRS expects consistency, so stick to one method all year.

What if you’re reimbursed by your employer? In most cases, you can still claim the mileage deduction, but only for the amount the employer didn’t cover. For example, if your employer pays you 60 cents per mile, you can deduct the remaining 5 cents per mile on your return.

Self‑employed freelancers often forget to claim the mileage rate on their Schedule C. It’s a line item that directly reduces your taxable income, so add it before you calculate self‑employment tax.

Business owners with a fleet can apply the rate to each vehicle separately. Just make sure each driver logs their own miles. The total deduction can add up quickly, especially for sales teams or service technicians who are on the road daily.

Keep your records for at least three years. If the IRS asks for proof, a well‑organized log and a copy of the published rate will satisfy them. No need to dig up old fuel receipts.

Finally, stay aware of any mid‑year changes. While the rate usually stays the same for the whole year, the IRS sometimes announces adjustments for specific circumstances, like emergency fuel price spikes. A quick scan of the IRS website each quarter keeps you informed.

By treating the standard mileage rate as a tool rather than a tax trick, you turn every business mile into a small, predictable savings. Track, multiply, and claim – that’s all it takes.