As a business owner or self-employed individual, tax season is a busy time for you. If you want to maximize your tax deductions, accurate mileage tracking plays a huge role in the extent to which you can successfully claim deductions.
Understanding how IRS mileage rates impact your business is an important step toward taking full advantage of annual tax deductions. By staying up to date on the latest mileage rate reimbursement changes, you can simplify your record-keeping, optimize your tax returns, and ensure compliance with IRS regulations.
In this guide, we'll explore the historical IRS mileage rates from 2010 to 2025, identify the factors influencing their fluctuations, and provide insights to help you maximize your deductions.
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What are IRS mileage rates, and why do they matter?
The IRS updates mileage reimbursement rates annually. The mileage rates provides businesses with a standardized way to calculate deductions for eligible driving expenses, including fuel, maintenance, insurance, and depreciation.
Instead of manually tracking actual expenses - every receipt from fuel purchases, oil changes and insurance payments, you can use standardized rates to calculate your deductions.
There are three main categories of mileage reimbursement rates:
1. Business mileage rate.This is the most common rate used to deduct expenses for business-related travel, such as meeting with clients, running errands for your company, or driving between work locations.
2. Medical mileage rate. This rate covers the cost of driving for medical purposes, such as doctor’s appointments, prescription pick-ups, or treatment trips.
3. Charitable mileage rate. You can deduct your mileage using this rate if you use your vehicle for volunteer work with a qualified charitable organization.
Why do these rates matter?
Simplified deductions. Eliminate the need to track every individual vehicle expense.
Tax savings. Reduce your taxable income and potentially lower your tax bill through mileage deductions.
Accurate reimbursements. Reimburse employees for business-related driving expenses through standard calculations.
Pro tip: Under the 2017 Tax Cuts and Jobs Act (TCJA), most taxpayers can no longer deduct moving-related mileage, except for active-duty military personnel. Only service members relocating under permanent change-of-station orders qualify for this deduction.
IRS mileage rates by year (2010 - 2025)
Yearly IRS mileage rates breakdown and analysis
IRS mileage rate in 2025
Business: 70 cents per mile
Medical/Moving: 21 cents per mile
Charity: 14 cents per mile
The business mileage rate jumped to 70 cents per mile, marking one of the most significant increases in recent years.
This was mainly due to faster-than-expected vehicle depreciation, with the higher rate helping to cover the rising costs of owning a vehicle.
IRS mileage rate in 2024
Business: 67 cents per mile
Medical/Moving: 21 cents per mile
Charity: 14 cents per mile
Inflationary pressures across industries, particularly transportation, drove another increase in the business mileage rate to 67 cents per mile. However, the medical/moving rate dropped to 21 cents, possibly reflecting stabilization in healthcare-related travel expenses.
IRS mileage rate in 2023
Business: 65.5 cents per mile
Medical/Moving: 22 cents per mile
Charity: 14 cents per mile
Despite a significant increase in 2022, standard mileage rates continued to rise in 2023. This increase reflects inflation, supply-chain issues, higher vehicle maintenance costs, and depreciation—not just fuel prices.
IRS mileage rate in 2022
Period
Business
Medical/Moving
Charity
January - June
58.5 cents per mile
18 cents per mile
14 cents per mile
July - December
62.5 cents per mile
22 cents per mile
14 cents per mile
2022 was a year of unprecedented volatility in mileage rates, primarily due to the lingering economic effects of the COVID-19 pandemic.
The year began with a business mileage rate of 58.5 cents per mile and a medical/moving rate of 18 cents per mile. But the ongoing impact of the pandemic and fluctuating gas prices – which reached a record-high monthly average of $5.058 per gallon in June – created significant inflation.
In response to these economic conditions, the IRS took the unusual step of implementing a mid-year adjustment to the per-mile rates. The business rate increased to 62.5 cents per mile, and the medical/moving rate rose to 22 cents per mile.
IRS mileage rate in 2021
Business: 56 cents per mile
Medical/Moving: 16 cents per mile
Charity: 14 cents per mile
The continued economic impact of the pandemic and lower fuel costs held mileage rates relatively steady. The business rate decreased slightly to 56 cents per mile, and the medical/moving rate decreased to 16 cents per mile.
IRS mileage rate in 2020
Business: 57.5 cents per mile
Medical/Moving: 17 cents per mile
Charity: 14 cents per mile
Despite the onset of the COVID-19 pandemic, mileage rates saw only minor adjustments. The business rate decreased slightly to 57.5 cents, and the medical/moving rate dropped to 17 cents. This reflected relatively stable fuel costs and economic conditions in the early stages of the pandemic.
IRS mileage rates in 2019
Business: 59 cents per mile
Medical/Moving: 20 cents per mile
Charity: 14 cents per mile
The respite from rising gas prices was short-lived. Fuel prices climbed again, reaching $2.901 per gallon in May.
This, coupled with rising insurance premiums and vehicle maintenance costs, led the IRS to increase the business mileage rate to 59 cents.
IRS mileage rate in 2018
Business: 54.5 cents per mile
Medical/Moving: 18 cents per mile
Charity: 14 cents per mile
Modest increases were seen across the board, with the business rate rising to 54.5 cents and the medical/moving rate to 18 cents. However, the Tax Cuts and Jobs Act brought a significant change, suspending moving mileage deductions for most taxpayers (except members of the armed forces) from 2018 to 2025.
IRS mileage rate in 2017
Business: 53.5 cents per mile
Medical/Moving: 17 cents per mile
Charity: 14 cents per mile
Lower fuel prices continued, slightly dropping the business rate to 53.5 cents per mile. Medical and moving rates also decreased to 17 cents per mile.
Factors like improved fuel efficiency in newer vehicles and a potential dip in maintenance costs contributed to the slight decreases in these years.
IRS mileage rates in 2016
Business: 54 cents per mile
Medical/Moving: 19 cents per mile
Charity: 14 cents per mile
Gas prices remained low throughout 2016, with a per gallon cost of $1.767 in February. This sustained period of low fuel costs likely contributed to another decrease in the business mileage rate, last recorded at 54 cents.
IRS mileage rates in 2015
Business: 57.5 cents per mile
Medical/Moving: 23 cents per mile
Charity: 14 cents per mile
Gas prices declined in 2015, reaching a low of $2.060 per gallon in December. However, rising vehicle costs and inflation likely contributed to the IRS's decision to increase the business mileage rate to 57.5 cents.
IRS mileage rate in 2014
Business: 56 cents per mile
Medical/Moving: 23.5 cents per mile
Charity: 14 cents per mile
In 2014, gas prices declined significantly, dropping to $2.560 per gallon by December. This trend likely influenced the IRS to keep the business mileage rate steady at 56 cents.
IRS mileage rates in 2013
Business: 56.5 cents per mile
Medical/Moving: 24 cents per mile
Charity: 14 cents per mile
Gas prices remained stubbornly high, exceeding $3.60 per gallon. The IRS steadily raised the business mileage rate, reaching 56.5 cents in 2013.
IRS mileage rates in 2012
Business: 55.5 cents per mile
Medical/Moving: 23 cents per mile
Charity: 14 cents per mile
Gas prices remained elevated in 2012, averaging $3.64 per gallon. The IRS, recognizing the continued burden on drivers, kept the business mileage rate at 55.5 cents per mile. This adjustment also reflects the rising costs of vehicle ownership, including insurance and depreciation.
IRS mileage rate in 2011
Period
Business
Medical/Moving
Charity
January - June
51 cents per mile
19 cents per mile
14 cents per mile
July - December
55.5 cents per mile
23.25 cents per mile
14 cents per mile
2011 was a turbulent year for gas prices. Rising from $3.091 in January to a peak of $3.933 per gallon in May, fuel costs strained drivers' budgets.
This surge and rising inflation prompted the IRS to adjust mid-year, increasing the business mileage rate from 51 cents to 55.5 cents per mile.
IRS mileage rate in 2010
Business: 50 cents per mile
Medical/Moving: 16.5 cents per mile
Charity: 14 cents per mile
The decade began with a business mileage rate of 50 cents per mile, reflecting the gradual economic recovery following the 2008 recession. Gas prices were relatively stable throughout the year, ranging from $2.659 to $2.985 per gallon. This stability, combined with other factors like vehicle maintenance and insurance costs, likely influenced the initial mileage rate set by the IRS.
The changes in IRS mileage rates over the years shows how factors like gas prices, vehicle depreciation, and the economy affect the decisions made by the IRS.
Factors influencing mileage rate changes
The IRS considers a variety of factors when determining annual mileage rates. However, the IRS tends to look at the following areas when defining the annual IRS mileage rates.
1. Direct vehicle-related costs
FRED: Average gas prices in the US from 2010 to 2025
Fuel prices. Fluctuations in gas prices directly impact driving costs and are a significant factor in mileage rate adjustments.
Vehicle maintenance costs. The cost of repairs, tires, and routine maintenance contributes to the overall expense of vehicle ownership.
Insurance rates. Insurance premiums are a significant component of vehicle operating costs and can vary based on location, driving history, and the type of vehicle.
Depreciation. Vehicles lose value over time, and depreciation costs are factored into mileage rates.
2. Broader economic conditions
Inflation and cost of living. General inflation and increases in the cost of living affect the price of goods and services related to vehicle ownership and operation.
Economic growth and stability. The overall health of the economy, including factors like GDP growth, unemployment rates, and consumer confidence, can influence mileage rates. For example, during periods of economic recession, the Internal Revenue Service might be more cautious about increasing rates.
3. Global socio-economic factors
Global events. Major global events, such as the COVID-19 pandemic, can significantly impact the economy, including fuel prices, supply chains, and inflation. The IRS takes these events into consideration when determining mileage rates.
Supply chain disruptions. Disruptions to global supply chains can affect the availability of vehicles, parts, and other goods, increasing costs and potentially influencing mileage rates.
Labor shortages in various sectors, including the automotive industry, can increase the costs of repairs, maintenance, and other services, indirectly impacting mileage rates.
4. Government policies
Tax policies. Changes in tax policies, such as the Tax Cuts and Jobs Act of 2017, can affect deductions and other aspects of vehicle ownership and use, indirectly influencing mileage rates.
Fuel efficiency and emissions standards. Government regulations and initiatives related to fuel efficiency and emissions can also influence mileage rates by affecting the types of vehicles available and their operating costs.
Understanding the factors that influence mileage rates provides valuable context for why they change year to year.
Maximize your mileage deductions
The annual IRS mileage rates reflect economic trends, fuel costs, and vehicle-related expenses, offering a standardized way to simplify deductions.
Understanding historical IRS mileage rates as well as how mileage rates are decided, gives your business an advantage, as you are aware of the factors that influence mileage rates each year.
Curious to learn more about the IRS mileage rates for 2025?
Andjelka is a skilled researcher and writer with 6+ years in digital marketing, specializing in SaaS and B2B content. With a background in sociology, social work, and journalism, she crafts strategy-driven content that resonates with audiences. Outside of work, she enjoys yoga, swimming, and relaxing with her cats and Leonard Cohen’s music.
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