This answer is from Physics Frequently Asked Questions #20.
The simple answer is that they don't. Look in a mirror and wave your right hand. On which side of the mirror is the hand that waved? The right side, of course.
Mirrors DO reverse In/Out. Imagine holding an arrow in your hand. If you point it up, it will point up in the mirror. If you point it to the left, it will point to the left in the mirror. But if you point it toward the mirror, it will point right back at you. In and Out are reversed. If you take a three-dimensional, rectangular, coordinate system, (X,Y,Z), and point the Z axis such that the vector equation X x Y = Z is satisfied, then the coordinate system is said to be right-handed. Imagine Z pointing toward the mirror. X and Y are unchanged (remember the arrows?) but Z will point back at you. In the mirror, X x Y = - Z. The image contains a left-handed coordinate system.
This has an important effect, familiar mostly to chemists and physicists. It changes the chirality, or handedness, of objects viewed in the mirror. Your left hand looks like a right hand, while your right hand looks like a left hand. Molecules often come in pairs called stereoisomers, which differ not in the sequence or number of atoms, but only in that one is the mirror image of the other, so that no rotation or stretching can turn one into the other. Your hands make a good laboratory for this effect. They are distinct, even though they both have the same components connected in the same way. They are a stereo pair, identical except for "handedness".
People sometimes think that mirrors *do* reverse left/right, and that the effect is due to the fact that our eyes are aligned horizontally on our faces. This can be easily shown to be untrue by looking in any mirror with one eye closed!
Reference: The Left Hand of the Electron, by Isaac Asimov, contains a very readable discussion of handedness and mirrors in physics.