The 2025 mileage rate IRS sets the standard deduction for business miles driven. The rate is determined by the Internal Revenue Service (IRS) and is adjusted annually to reflect changes in fuel costs. For 2025, the mileage rate is 65.5 cents per mile. This means that taxpayers can deduct 65.5 cents for every business mile they drive. The mileage rate is beneficial for businesses and individuals who use their vehicles for business purposes, as it allows them to reduce their taxable income.
The mileage rate is important because it helps businesses and individuals accurately calculate their taxable income. By using the mileage rate, taxpayers can ensure that they are not paying more taxes than they owe. Additionally, the mileage rate helps to reduce the administrative burden associated with tracking business miles.