# IRS standard mileage rate 2025: International comparison

> Compare IRS standard mileage rate with rates from other countries and understand the differences.

**Author:** Sarah Chen — International Tax & IRS Specialist  
**Published:** 2025-10-15  
**Updated:** 2025-10-15  
**URL:** https://quilometragem.com/blog/irs-standard-mileage-rate-2025-international-comparison

**TL;DR:** Compare IRS standard mileage rate with rates from other countries and understand the differences.

- IRS (USA) standard rate for 2025 is global reference, but each country has its own reality.
- 2025 Rates by Country (converted to USD/km).
- FUEL COST: - USA: $0.90/liter (subsidized) - Europe: $1.80-2.20/liter (high taxes) - Brazil/Mexico: $1.00-1.20/liter 2.
- Implications for Multinationals.
- Local fuel / efficiency = fuel cost/km 2.

## IRS Standard Mileage Rate 2025: International Comparison[^irs-mileage-44]

IRS (USA) standard rate for 2025 is global reference, but each country has its own reality. Let's compare.

## 2025 Rates by Country (converted to USD/km)

- USA (IRS): $0.68/mile = $0.42/km
- UK: £0.45/mile = $0.56/km (first 16,000km)
- Canada: CAD $0.70/km = $0.52/km (first 5,000km)
- Australia: AUD $0.88/km = $0.57/km
- Germany: €0.30/km = $0.32/km
- France: €0.52/km (average) = $0.56/km
- Brazil: R$ 1.50/km = $0.30/km
- Mexico: MXN $4.00/km = $0.23/km

## Why the Differences Between Countries?

1. FUEL COST:
   - USA: $0.90/liter (subsidized)
   - Europe: $1.80-2.20/liter (high taxes)
   - Brazil/Mexico: $1.00-1.20/liter

2. VEHICLE COST:
   - USA: relatively cheap vehicles
   - Brazil: high taxes, cars 50-80% more expensive
   - Europe: moderate prices but expensive insurance

3. DEPRECIATION:
   - Mature markets (USA, Europe): predictable 15-20%/year depreciation
   - Emerging markets: erratic 10-30%/year depreciation

4. MAINTENANCE:
   - USA: cheap parts, expensive labor
   - Europe: everything expensive
   - Latin America: expensive parts, cheap labor

## Implications for Multinationals

- DON'T use American rate globally
- Adapt by country considering real local costs
- UK and Australia have fairer rates than USA
- Brazil and Mexico need higher rates than official tables show

## Universal Calculation Method
1. Local fuel / efficiency = fuel cost/km
2. Add 50-80% for depreciation, insurance, maintenance
3. Compare with country's official rate
4. Use higher to be fair to employee

Quilometragem supports all these currencies and rates, facilitating global operation.

## Frequently asked questions

### Does the IRS rate work for other countries?

No. Fuel cost, depreciation and maintenance vary widely; using the US rate outside the US causes unfair reimbursement and tax exposure.

### Why do rates vary so much between countries?

Differences in fuel price, vehicle taxes, insurance costs and depreciation patterns explain the gap, which can exceed 200%.

### How to set fair rates for multinationals?

Calculate real per-country cost (fuel, depreciation, maintenance, insurance) and compare with the local official rate; use the higher of the two to be fair.

## Sources

- [IRS — Standard Mileage Rates](https://www.irs.gov/tax-professionals/standard-mileage-rates) — Internal Revenue Service (2026-04-28)
- [HMRC — Mileage Allowance Payments (UK)](https://www.gov.uk/expenses-and-benefits-business-travel-mileage) — HM Revenue & Customs (2026-04-28)
- [CRA — Reasonable per-kilometre allowance (Canada)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-allowances/reasonable-per-kilometre-allowance.html) — Canada Revenue Agency (2026-04-28)