The Federal Mileage Rate is the standard rate set by the IRS for reimbursing employees for business-related travel using their personal vehicles, updated annually.
- What is the federal mileage rate?
Answer: It is the IRS-set rate for reimbursing business travel with personal vehicles. - What is the 2025 federal mileage rate?
Answer: As of July 11, 2025, it is $0.67 per mile (subject to annual updates). - Who uses the federal mileage rate?
Answer: Employers and self-employed individuals use it for reimbursement. - What expenses does it cover?
Answer: It covers fuel, maintenance, and depreciation. - How is it updated?
Answer: The IRS adjusts it annually based on vehicle costs and inflation.
