Updated October 30, 2026. Quick answer: Publication 225 is the IRS Farmer’s Tax Guide, and the web edition is for 2025 returns. It covers farm records, accounting methods, income, expenses, depreciation, sales of farm property, self-employment tax, employment taxes and the special estimated tax rules for qualified farmers.
Quick reference
| Item | As the IRS publication states it |
|---|---|
| Standard mileage rate for 2025 (Truck and Car Expenses) | 70 cents per mile |
| Section 179 limit for most property placed in service in 2025 (Dollar Limits) | $2,500,000 |
| Cost of section 179 property above which the limit is reduced (What’s New) | $4,000,000 |
| SE tax rate (social security and Medicare parts together) | 15.3% |
| Social security part of SE tax, maximum net earnings for 2025 (What’s New) | $176,100 |
| Net earnings from self-employment that trigger SE tax (Who Must Pay SE Tax) | $400 or more |
| Qualified farmer share of gross income from farming (Estimated Tax) | at least two-thirds |
| Employment tax records (How Long To Keep Records) | at least 4 years |
What the publication covers
The introduction says “You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant.” It adds “This publication explains how the federal tax laws apply to farming.” The IRS page carries the cover line “For use in preparing 2025 Returns”.
The publication describes its purpose this way: “Use this publication as a guide to figure your taxes and complete your farm tax return.” It also sets a limit on itself: “However, the information given does not cover every situation and is not intended to replace the law or change its meaning.”
Chapters in plain words
- Chapter 1, Importance of Records: why to keep records, what kinds and how long.
- Chapter 2, Accounting Methods: the cash method, the accrual method, farm inventory and special methods such as the crop method.
- Chapter 3, Farm Income: sales of farm products, sales caused by weather related conditions, rents, crop shares, machinery rental, agricultural program payments, crop insurance, and income from cooperatives.
- Chapter 4, Farm Business Expenses: the expenses a farmer can deduct, including truck and car expenses, travel, and losses from operating a farm.
- Chapter 5, Soil and Water Conservation Expenses.
- Chapter 6, Basis of Assets: cost basis, adjusted basis and basis other than cost.
- Chapter 7, Depreciation, Depletion, and Amortization, including the section 179 expense deduction and the special depreciation allowance.
- Chapter 8, Gains and Losses: sales and exchanges, like kind exchanges, capital gains, livestock and timber.
- Chapter 9, Dispositions of Property Used in Farming, and Chapter 10, Installment Sales.
- Chapter 11, Casualties, Thefts, and Condemnations.
- Chapter 12, Self-Employment Tax, and Chapter 13, Employment Taxes.
- Chapter 14, Fuel Excise Tax Credits and Refunds, and Chapter 15, Estimated Tax.
Tables, worksheets and figures inside it
- Table 3-1, Where To Report Sales of Farm Products, Table 3-2, Sales Caused by Weather-Related Conditions, and Table 3-3, Income from Renting Machinery or Equipment.
- Table 5-1, Limits on Deducting an Assessment by a Conservation District for Depreciable Property.
- Table 6-1, Plants With a Preproductive Period of More Than 2 Years.
- Table 7-1, Farm Property Recovery Periods.
- Table 9-1, Where To First Report Certain Items on Form 4797, and Worksheet 10-1, Figuring Adjusted Basis and Gross Profit Percentage.
- Figure 12-1, Can I Use the Optional Methods?, and Table 12-1, Figuring Farm Net Earnings.
- Table 14-1, Fuel Excise Tax Credits and Refunds at a Glance, and Table 14-2, Claiming a Credit or Refund of Excise Taxes.
- Figure 15-1, Estimated Tax for Farmers.
On this site, Form 4562 and the section 179 limitation worksheet match chapter 7, Form 4797 and Form 6252 match chapters 9 and 10, and Schedule SE matches chapter 12.
The figures that matter
For the car, the Truck and Car Expenses section says “The standard mileage rate for 2025 is 70 cents per mile.”
For section 179, the Dollar Limits section says “The total amount you can elect to deduct under section 179 for most property placed in service in 2025 is $2,500,000.” The What’s New section adds “This limit is reduced by the amount by which the cost of the section 179 property placed in service during the tax year exceeds $4,000,000.”
For self-employment tax, chapter 12 says “The SE tax rate is 15.3%.” and “The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).”
The What’s New section says “The maximum net self-employment earnings subject to the social security part (12.4%) of the self-employment tax is $176,100 for 2025, up from $168,600 for 2024.”
On who must pay, chapter 12 says “You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more.”
On estimated tax, chapter 15 says “An individual is a qualified farmer for 2025 if at least two-thirds of their gross income from all sources for 2024 or 2025 was from farming.” It adds “If you must pay estimated tax, you are required to make only one estimated tax payment (your required annual payment) by January 15, 2026, using special rules to figure the amount of the payment.”
On records, chapter 1 says “If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later.”
Where it points elsewhere
The publication sends readers to other IRS guides, including “See Pub. 505 for the general rules and requirements for paying estimated tax.” On this site, Form 1040-ES is the estimated tax form the chapter refers to, Form 4835 covers farm rental income, Form 943 is the annual return for agricultural employees, and farm LLC or partnership basics covers how a farm may be organized.
Where this comes from
The IRS page About Publication 225 opens with “This publication explains how the federal tax laws apply to farming.” It links the PDF and eBook editions and the earlier revisions of the publication.
This page describes the web edition of Publication 225 (2025), Farmer’s Tax Guide, as served on irs.gov on October 30, 2026. The IRS can revise a publication after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Using this edition for 2026 amounts. The publication says “The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2026 will be discussed in the 2025 Pub. 334.”
- Carrying unused section 179 cost forward. The publication says “You cannot carry costs in excess of the $2,500,000 limit over to future years.”
- Counting every dollar of farm related pay as farm income for the qualified farmer test. The publication says farm income does not include “Wages you receive as a farm employee,” the first of three items its list of exclusions names.
- Assuming a qualified farmer has no deadline. The publication says “You do not have to pay estimated tax if you file your 2025 tax return and pay all the tax due by March 2, 2026.”
Related: IRS publications by number, Schedule SE, Form 4562, Section 179 limit, Form 4797, Form 6252, installment sales, Form 4835, farm rental income, and Form 943.
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Answer againSources
- IRS, Publication 225 (2025), Farmer’s Tax Guide (irs.gov): https://www.irs.gov/publications/p225
- IRS, About Publication 225, Farmer’s Tax Guide (irs.gov): https://www.irs.gov/forms-pubs/about-publication-225
Read from the IRS pages linked above on October 30, 2026. General information, not tax or legal advice. The IRS publication and the instructions for your own form control, and your own facts decide the outcome.