Internal Revenue Service (IRS) Standard Mileage Rates

Internal Revenue Service (IRS) Standard Mileage Rates

INSIGHTi

Internal Revenue Service (IRS) Standard
Mileage Rates
February 16, 2024
The Internal Revenue Service (IRS) provides standard mileage rates as optional methods for taxpayers to
substantiate their transportation expenses. This Insight reviews how the standard mileage rates are set,
who uses them, and a history of the rates.
Who Uses the Standard Mileage Rates?
Standard mileage rates are used for various tax deductions. Under current law, only taxpayers with
business income (such as business owners and independent contractors) may claim a deduction for
business mileage. The charitable mileage rate is claimed as part of the charitable giving itemized
deduction, similar to an in-kind donation. Certain taxpayers, notably members of the Armed Forces, may
also use the standard mileage rates in other situations. Employers generally may exclude some business
mileage reimbursements from their employees’ income for tax purposes. To do so, either the employee
must document their business-related automobile expenses, or the employer can multiply the worker’s
business-related mileage by a standard mileage rate up to the rate set by the IRS.
Prior to 2018, taxpayers could use the medical and moving standard mileage rate to calculate the above-
the-line deduction for unreimbursed moving expenses. Additionally, taxpayers who itemized their
deductions could use the business standard mileage rate to calculate their unreimbursed employee travel
expenses. The 2017 tax law (P.L. 115-97, commonly called the Tax Cuts and Jobs Act) prohibited most
taxpayers from deducting unreimbursed employee or moving expenses through 2025.
The standard mileage rate is also used to set the rate of reimbursement for government-sponsored travel.
The U.S. General Services Administration’s (GSA’s) privately owned automobile mileage reimbursement
rate is statutorily required to track the standard mileage rates set by the IRS.
Many private businesses, state and local governments, and nonprofits choose to reimburse their
employees at the federal rate for simplicity and to maximize the tax-free employee benefit. Federal law
only requires employers to reimburse employees for business-related mileage if failing to do so would
push the employees’ net income below the minimum wage, though some states require employers to
reimburse employees for all work-related mileage expenses.
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How Are the Standard Mileage Rates Set?
The authorization for a standard mileage rate generally comes from long-standing IRS regulations and
guidance. These provide optional methods for satisfying the expense substantiation requirement in statute.
The IRS has an independent contractor conduct an annual study of the fixed and variable costs of
operating an automobile. The results of that study are used for the business rate and the medical and
moving rate. The rate for charitable uses is set by statute (Internal Revenue Code, §170(i)).
The business standard mileage rate includes all the fixed and variable costs of operating a vehicle. Fixed
costs do not vary based on the distance the vehicle travels, including insurance and depreciation of the
vehicle’s value. Variable costs vary based on the distance the vehicle travels, including the cost of fuel,
tires, brakes, and other components. The medical and moving rate includes only variable costs. None of
the standard mileage rates include tolls or parking costs.
History of Standard Mileage Rates
Table 1 provides a history of the rates that applied between 2000 and 2024. The IRS generally changes
standard mileage rates once per year, with the exception of the rate for charitable purposes. Because the
standard mileage rate for charitable purposes is set in statute, it has changed less frequently than the other
rates. The current rate of 14 cents per mile was set by the Taxpayer Relief Act of 1997 (P.L. 105-34) and
took effect in 1998.
Table 1. IRS Standard Mileage Rates, 2000-2024
Cents Per Mile
Dates (Entire Year
Medical and
Unless Specified)
Business
Charity
Moving
IRS Reference
2024
67
14
21
N 2024-08
2023
65.5
14
22
N 2023-03
2022

July 1–Dec. 31
62.5
14
22
A 2022-13
Jan. 1–June 30
58.5
14
18
N 2022-03
2021
56
14
16
N 2021-02
2020
57.5
14
17
N 2020-05
2019
58
14
20
N 2019-2
2018
54.5
14
18
N 2018-3
2017
53.5
14
17
N 2016-79
2016
54
14
19
N 2016-1
2015
57.5
14
23
N 2014-79
2014
56
14
23.5
N 2013-80
2013
56.5
14
24
N 2012-72
2012
55.5
14
23
N 2012-1
2011

July 1-Dec. 31
55.5
14
23.5
A 2011-40

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Dates (Entire Year
Medical and
Unless Specified)
Business
Charity
Moving
IRS Reference
Jan. 1-June 30
51
14
19
N 2010-88
2010
50
14
16.5
RP 2009-54
2009
55
14
24
RP 2008-72
2008
50.5
14
19
RP 2007-70
2007
48.5
14
20
RP 2006-49
2006
44.5
14a
18
RP 2005-78
2005

Sept. 1-Dec. 31
48.5
14a
22
A 2005-71
Jan. 1-Aug. 31
40.5
14a
15
RP 2004-64
2004
37.5
14
14
RP 2003-76
2003
36
14
12
RP 2002-61
2002
36.5
14
13
RP 2001-54
2001
34.5
14
12
RP 2000-48
2000
32.5
14
10
RP 1999-38
Source: CRS using IRS documents.
Notes: A=Announcement; N=Notice; RP=Revenue Procedure.
a. The Katrina Emergency Tax Relief Act of 2005 (P.L. 109-73) provided separate standard mileage rates for miles driven
to provide relief related to Hurricane Katrina.
Mid-Year Rate Changes
The IRS provided mid-year rate adjustments three times between 2000 and 2024. In 2005, higher business
and medical and moving rates applied during the last four months of the year. In 2011 and 2022, higher
business and medical and moving rates applied during the second half of the year. In announcing all three
changes, the IRS stated that the modifications were due to “recent increases in the price of fuel.”
Special Standard Mileage Rates
Congress has applied different rates to some activities. For example, the standard mileage rate does not
apply to the President or Members of Congress. It also does not apply to the reimbursement that the
Department of Veterans Affairs pays to some veterans and caregivers for travel costs related to receiving
health care.
Other special rates have applied in the past. Previously, rural mail carriers could use a special mileage rate
that was higher than the business mileage rate. Congress also increased the charitable mileage rate
temporarily for relief workers following certain natural disasters.

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Author Information

Anthony A. Cilluffo
Brendan McDermott
Analyst in Public Finance
Analyst in Public Finance

Disclaimer
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