IRS Standard Mileage Rate History 2012-2025

The IRS standard mileage rate is a per-mile allowance the IRS sets each year that taxpayers can use to calculate the deductible cost of operating a vehicle for business, medical, moving, or charitable purposes. It simplifies record-keeping by removing the need to track actual operating costs such as fuel, oil, repairs, and depreciation. The rate for business use is recalculated annually based on an annual study of fixed and variable vehicle costs. Medical and moving rates reflect variable costs only.

No. Commuting miles (the drive from your home to your regular place of work) are not deductible under any circumstance. The IRS considers commuting a personal expense. Only business miles driven after you arrive at your first work location, or trips between two work locations, qualify. Publication 463 from the IRS sets out the rules in detail.

It depends on your vehicle and how much you drive for work. The standard mileage rate is simpler and requires only a mileage log. Actual costs require tracking every expense (fuel, insurance, repairs, depreciation) and allocating by business-use percentage. If your vehicle is expensive to run, actual costs may yield a larger deduction. Important: if you use actual costs in the first year the vehicle is placed in service for business, you generally cannot switch to the standard mileage rate for that vehicle in a later year.

The IRS requires contemporaneous records: a mileage log that records the date, destination, business purpose, and number of miles for each trip. 'Contemporaneous' means recorded at or near the time of the trip, not reconstructed from memory at year-end. A dedicated mileage-tracking app, paper log, or calendar notes all satisfy this requirement. Keep records for at least three years from the date you file the return.

The charitable mileage rate of 14 cents per mile is set by federal statute (26 U.S.C. 170(i)) and can only be changed by an act of Congress, unlike the business and medical rates which the IRS adjusts annually. The 14-cent rate has been unchanged since 1998. It reflects only the variable cost of fuel, not the full cost of vehicle operation. Several bills have been introduced in Congress over the years to raise it but none have been enacted.

Generally, if you used the standard mileage rate in the first year you used the vehicle for business, you may switch to actual costs in a later year, subject to depreciation rules. However, if you used actual costs (including MACRS depreciation) in the first year, you cannot switch to the standard mileage rate for that vehicle in any subsequent year. The rules also differ for leased vehicles. Consult IRS Publication 463 or a tax professional for your specific situation.