The Internal Revenue Service (IRS) mileage rate is a standard deduction that reimburses taxpayers for the costs of operating a vehicle for business purposes. It is reviewed annually and adjusted based on various factors, including gas prices and maintenance costs. The mileage rate for 2025 has yet to be announced, but it is expected to increase from the current rate of 65.5 cents per mile.
The IRS mileage rate increase is important because it helps taxpayers accurately deduct their business-related vehicle expenses. Without this deduction, taxpayers would have to track their actual expenses, which can be time-consuming and difficult. The mileage rate provides a simple and convenient way to calculate these expenses.