Mileage Reimbursement Rate Changes Effective January 1, 2025

1/15/25

To: Campus Community
Fr: Annette Gonzales, A/P Travel Manager
Re: Mileage Reimbursement Rate Changes Effective January 1, 2025

Greetings,

The University’s mileage reimbursement rates for expenses incurred in connection with the business use of a private automobile will change in accordance with the Internal Revenue Service standard mileage rates published in IRS Notice 2025-5.

The following new rates are effective for expenses incurred on or after January 1, 2025:

• The reimbursement rate for the use of a private automobile for University business travel will increase from 67 cents a mile to 70 cents per mile.
• The reimbursement rate for driving an automobile in connection with a move or relocation will remain 21 cents per mile. (Note that reimbursements for moving-related expenses, including mileage, are considered taxable wage income as of January 1, 2018).

Business and Finance Bulletin G-28, Travel Regulations, has been revised to include the mileage rate change and will be posted online at http://policy.ucop.edu. The revised policy also includes a technical update to the link for privately owned vehicle mileage reimbursement rates. Please see the attached letter for more details.

If you have any questions please contact Annette Gonzales at (805) 893-7037 or annette.gonzales@bfs.ucsb.edu.