What is the Standard mileage rate?
The standard mileage rate is an IRS-established per-mile amount that taxpayers can use to calculate vehicle expense deductions for business, medical, moving, or charitable purposes without tracking actual operating costs. For 2025, the business standard mileage rate is 70 cents per mile, covering fuel, maintenance, repairs, insurance, registration fees, and vehicle depreciation. This simplified method eliminates the need to document individual expense receipts while providing a standardized deduction based solely on documented business miles driven. Taxpayers must choose between the standard mileage rate and the actual Vehicle expenses method, with certain restrictions on switching between methods after the initial year. The rate does not include separately deductible parking fees and tolls incurred during business travel.
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