Mileage Reimbursement 2025

For most employee reimbursement workflows, start with business miles driven in 2025 and multiply those miles by 70.0 cents per mile, unless the employer policy uses a different approved rate.

The rate is only one part of the claim. The employer still needs to know who is eligible, which trips count as business travel, and what records support the amount.

• Confirm the trip happened in the 2025 tax year.
• Exclude commuting and personal detours before calculating business miles.
• Apply the employer-approved rate or the IRS business benchmark.
• Attach a mileage log with date, destination, business purpose, and miles.
• Submit a reimbursement form so the amount can be reviewed and approved.

Employee mileage reimbursement is paid by an employer to cover job-related driving costs. When handled under an accountable plan, these payments are non-taxable and are not reported as employee wages.

In contrast, self-employed individuals and 1099 contractors claim mileage as a tax deduction on Schedule C (Form 1040) to reduce net business income. Under the Tax Cuts and Jobs Act, W-2 employees cannot claim a federal tax deduction for unreimbursed employee mileage.