If you're someone who gets reimbursed by your employer for the business use of your personal car, this update is for you!

Starting January 1st, 2025, the reimbursement rate for business mileage is increasing to 70 cents per mile, up from 67 cents in 2024. This change comes as part of the IRS's annual adjustment to account for rising fuel costs, maintenance, insurance, and other expenses associated with vehicle use for business purposes.

If your employer hasn't already communicated this adjustment, it's important to check with them to ensure that your reimbursement rate reflects this change. The new rate can help you cover the increased costs of driving for work, ensuring you're properly compensated for your time on the road.

Here's a quick breakdown of how the reimbursement works:

• The rate applies to all miles driven for business purposes in your personal vehicle.

• This includes trips to meetings, client visits, and other business-related travel.

• Keep track of your mileage accurately to ensure you're reimbursed fairly.

Why the Change? The IRS adjusts the standard mileage rate each year to keep up with changing conditions in the economy. For 2025, the increase to 70 cents per mile reflects rising transportation costs, so it's essential to stay updated to make sure you are not leaving money on the table.

How Does This Affect You? If you’re currently receiving the 67-cent reimbursement rate in 2024, you should be seeing an increase in 2025, which could add up significantly over time if you drive frequently for business. For example, if you drive 1,000 miles for work in 2025, that extra 3 cents per mile could add an additional $30 to your total reimbursement!

What Should You Do Next?

• Confirm with Your Employer: If your company hasn't updated the rate yet, it's time to bring it up. Ensure they adjust the reimbursement rate starting January 1st.

• Track Your Mileage: Make sure you're keeping an accurate log of your business miles so you’re reimbursed correctly.

We hope this update helps you get the most out of your business mileage reimbursement! As always, stay informed, and feel free to reach out if you have any questions.