31 January 2025 IRS releases federal mileage rates and luxury vehicle limit for 2025 Effective January 1, 2025, the business standard mileage rate for use of a car (including vans, pickup trucks and panel trucks) increases from $0.67 to $0.70, and the rate for medical and relocation mileage is unchanged at $0.21. Mileage related to charity is set by law and remains at $0.14 per mile. (Notice 2025-05; Notice 2024-08.) It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses incurred between January 1, 2018, and December 31, 2025, except members of the Armed Forces on active duty moving under orders to a permanent change of station. Pursuant to the vehicle valuation limit that applies to use of the optional fleet-average and vehicle cents-per-mile valuation methods, the maximum fair market value of a vehicle (including trucks and vans) first made available to employees in calendar year 2025 decreases from $62,000 to $61,200.
Document ID: 2025-0365 | ||||||||||||||||