2025 Mileage Reimbursement Rate Update
The Internal Revenue Service has announced that the mileage reimbursement rate for businesses in 2025 will be 70 cents per mile. This is a three-cent per mile increase over the 2024 rate of 67 cents.
If your agency allows your employees to use the IRS mileage rate, you will need to adjust your expense procedures accordingly to reflect the new mileage rate.
Information for the new rate can be found here.
If your agency uses the Commonwealth of Kentucky mileage reimbursement rate, it is important to remember that this rate is adjusted currently. The state mileage reimbursement rate from Jan. 1 to March 31, 2025, is 43 cents per mile. This amount is unchanged from the previous quarter.
Like the IRS rate, if your agency uses the state reimbursement rate, you should check your mileage reimbursement procedures to ensure that your agency is paying the correct state rate.
Information on the state rate can be found here.
If you have questions about your agency's mileage policy, please contact Chris Johnson or Michael Simon, KLC's personnel law attorneys, at 800.876.4552.
Author Info
Personnel Services Managing Attorney
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