Mileage Rate 2025 Calculator
Calculate your deductible business mileage reimbursement based on the 2025 IRS rates.
Your Estimated Reimbursement:
Understanding the 2025 Mileage Rates and Reimbursement
The mileage rate calculator is a crucial tool for individuals who use their personal vehicles for business, medical, moving, or charitable purposes. The Internal Revenue Service (IRS) sets standard mileage rates annually to simplify the process of deducting these expenses. By using these rates, you can claim reimbursement for the costs of operating your vehicle, including gas, maintenance, repairs, tires, insurance, and depreciation, without needing to track every individual expense.
2025 IRS Standard Mileage Rates
For the tax year 2025, the IRS has announced the following standard mileage rates:
- Business Use: $0.61 per mile. This rate applies to miles driven in connection with your trade or business. It covers operating costs like fuel, oil, maintenance, repairs, insurance, and vehicle registration fees. Depreciation is also included.
- Medical Use: $0.21 per mile. This rate is for miles driven for medical or long-distance care purposes. It can be used in addition to the standard deduction for medical expenses.
- Charitable Use: $0.14 per mile. This rate is for miles driven in service of a qualified charitable organization. Importantly, this rate is set by law and is not determined by the IRS's business or medical rates.
Note on Commuting Miles: Generally, miles driven from your home to your regular place of work (commuting) are considered personal miles and are not deductible. However, there are exceptions, such as when you have a second business location or travel to a temporary work site. This calculator allows you to subtract potential commuting miles if you are confident they do not qualify for deduction.
How the Calculator Works
This calculator uses the 2025 IRS standard mileage rates to estimate your potential reimbursement or deduction. The calculation is as follows:
- Business Mileage Reimbursement: Multiply the total qualified business miles driven by the business use rate ($0.61 per mile).
- Medical Mileage Reimbursement: Multiply the total miles driven for medical purposes by the medical use rate ($0.21 per mile).
- Charitable/Moving Mileage Reimbursement: Multiply the total miles driven for charitable or moving purposes by the charitable use rate ($0.14 per mile).
- Total Reimbursement: Sum the reimbursements calculated for business, medical, and charitable/moving mileage.
The calculator also accounts for optional input of business miles driven for commuting, which are typically not deductible. If entered, these miles will be subtracted from the total business miles before the business reimbursement is calculated, ensuring a more accurate estimate of deductible business mileage.
Who Should Use This Calculator?
- Employees who are reimbursed by their employer based on the standard mileage rate.
- Self-employed individuals and independent contractors who deduct vehicle expenses on their tax returns.
- Individuals who drive for medical appointments or treatments.
- Volunteers who drive for charitable organizations.
Important Considerations
- Record Keeping: While these rates simplify expense tracking, the IRS still requires detailed records. Maintain a mileage log that includes the date, destination, business purpose, and miles driven for each trip.
- Vehicle Type: The standard mileage rate applies to all miles driven using a vehicle, regardless of its size or make.
- Actual Expense Method: Alternatively, taxpayers can choose to deduct the actual expenses of using their vehicle, including gas, oil, repairs, and depreciation. If you choose the actual expense method for a car in a particular year, you generally cannot use the standard mileage rate for that car.
- Consult a Professional: Tax laws can be complex. For specific advice regarding your situation, always consult with a qualified tax professional or refer to IRS Publication 463, Travel, Gift, and Car Expenses.