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IRS Announces 2025 Medical Mileage Rate

01/09/25

Author: ADP Admin/Monday, January 6, 2025/Categories: Compliance Corner , Federal Compliance Update

On Dec. 19, 2024, the Internal Revenue Service issued Notice 2025-05 announcing that the standard mileage rate, effective Jan. 1, 2025, for use of an automobile to obtain medical care is 21 cents per mile. This is the same rate as in 2024. 

The Details: 

Transportation expenses, such as automobile mileage, that qualify as tax deductible medical expenses under Internal Revenue Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health flexible spending arrangement, health reimbursement arrangement, or health savings account if the expense is “primarily for, and essential to, medical care.”

Find a copy of Notice 2025-05 here.

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Tags: 01/09/25

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