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IRS Increases Standard Mileage Rate to 70 Cents for 2025

CATEGORY: Client Update for Public Agencies
CLIENT TYPE: Public Employers
DATE: Jan 08, 2025

On December 19, 2025, the IRS announced that standard mileage rate for vehicles driven for business purposes will increase to 70 cents per mile effective January 1, 2025. This is 3 cents greater than the 2024 rate. The standard mileage rate applies to fully-electric and hybrid vehicles, as well as gasoline and diesel-powered vehicles. Please see IRS Notice 2025-5 for more information.

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