For the 2025 tax year (effective January 1, 2025), the IRS has updated the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

2025 Standard Mileage Rates:

• Business Use: 70 cents per mile (up 3 cents from 2024)

• Medical or Moving (Military): 21 cents per mile

• Charitable: 14 cents per mile (set by statute)

Why tracking matters: To claim this deduction, you must maintain a compliant log that records the date, mileage, and specific business purpose of every trip. "Estimates" are frequently disallowed during an audit.

For a review of the best tools to automate this process, please see our guide: Mileage Tracking Automation Apps and Leveraging Schedule C.