Volunteer Drivers Could Get Bigger Tax Break for Mileage Under Proposed 2025 Act

The 'Volunteer Driver Tax Appreciation Act of 2025' aims to give a boost to folks using their personal vehicles for charity work. Starting with tax years after December 31, 2024, this bill would increase the standard mileage rate you can deduct for driving related to volunteering. Specifically, Section 2 mandates that the rate for charitable driving must be at least as high as the standard rate used for business or medical travel, which is typically higher than the current charitable rate.

More Gas Money Back for Good Deeds?

Right now, the mileage rate you can deduct for charity drives is often lower than what you can claim for business trips. This bill looks to close that gap. If you spend your time driving seniors to appointments for a nonprofit, delivering meals, or transporting goods for a charity, this change means the deduction you can claim for those miles would increase. The goal is pretty straightforward: make it a little less costly for people to donate their time and vehicle use to causes they care about.

Who Gets the Bigger Break?

This potential tax break primarily benefits volunteers who itemize their deductions on their tax returns, rather than taking the standard deduction. Think of itemizing like listing out specific deductible expenses (like mortgage interest, state taxes, and charitable donations) instead of taking a lump-sum standard deduction. If your total itemized deductions are higher than the standard deduction, you itemize. Since higher-income earners are generally more likely to itemize, they might see more direct benefit from this increased mileage rate. Those who take the standard deduction won't see a change in their taxes from this specific provision, even if they volunteer drive.

The Fine Print: How Much More?

While the bill guarantees the charitable rate won't be less than the business/medical rate, it gives the Treasury Secretary the final say on the exact amount each year (as outlined in Section 2). So, the precise value of the deduction could fluctuate annually, but the key takeaway is that it's mandated to be higher than the historically lower charitable-specific rate. This provides a more substantial acknowledgment of the costs volunteers incur, though the exact cents-per-mile figure will depend on the Secretary's determination each year, based on that floor.