Everything You Need to Know About IRS Mileage Rates in 2024 and Beyond
The IRS standard mileage rate, sometimes referred to as the federal mileage rate or mileage reimbursement rate, is an essential factor for anyone who drives for work or manages people who do. If you’re self-employed, deducting vehicle expenses from your taxes can add up to a lot, especially for gig workers and rideshare drivers. For employees and their employers, the IRS mileage rate is an important benchmark for setting reimbursement rates.
How does the IRS determine mileage rates each year, and what is the rate for 2024? This guide explains everything you need to know about past, present, and future IRS mileage rates. We'll cover:
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The current IRS mileage rates for 2024 are:
The federal mileage rate for medical use is typically slightly lower than for business use because it takes fewer costs into account. Variable costs, such as gas, are included in the calculation, but not fixed costs that don’t change much based on how many miles you drive, like insurance.
The federal mileage rate for charitable use is set by statute. Currently set at 14 cents per mile, it has not changed in many years.
The IRS publishes the federal standard mileage rate each calendar year. This sets the per-mile rate for operating vehicles for business, medical, or charitable purposes.
The rate for business represents an estimate of the per-mile costs of using your car, based on nationwide averages in the previous year. To set the business rate, the IRS analyzes these primary data sources:
In particular, gas prices are heavily weighted in the yearly calculation since fuel is a major cost factor directly tied to mileage. The IRS synthesizes these data points to determine a reasonable standard per-mile rate. This rate is also known sometimes as the federal mileage reimbursement rate
Looking back over the last decade of IRS standard mileage rates provides helpful context on what drivers can expect in 2024 based on inflation, fuel prices, and other cost factors:
2014 - 56 cents per mile
2015 - 57.5 cents per mile
2016 - 54 cents per mile
2017 - 53.5 cents per mile
2018 - 54.5 cents per mile
2019 - 58 cents per mile
2020 - 57.5 cents per mile
2021 - 56 cents per mile
2022* - 58.5 cents/62.5 cents per mile
2023 - 65.5 cents per mile
2024 - 67 cents per mile
*In 2022, the IRS mileage rate was raised from 58.5 cents to 62.5 cents for the second half of the year, to combat rising costs.
Rates trended lower between 2016 and 2018 due to low national gas prices and modest inflation. However, in recent years, the rate has gone up due to a reverse in those same factors. Higher rates better reflect the true costs that drivers are incurring for business transportation when gas and overall consumer prices are elevated.
Related: IRS Mileage Rate History | Everlance
Though based on thorough data analysis, IRS mileage rates are inherently estimates. Many variables influence transportation costs annually. Key factors that can impact rate changes include:
The IRS considers these variables when setting each year's mileage deduction rate. For 2024, inflation and gas prices had the biggest influence, barring wider economic impacts.
The 2024 mileage rate will apply to all driving done starting January 1, 2024. It will be the rate at which self-employed folks can deduct business mileage from their 2024 taxes and the rate up to which companies can reimburse employees tax-free.
Regardless of small annual fluctuations, the IRS mileage rate remains significant, especially for people who drive a lot, like gig workers, rideshare drivers, and sales reps. With the IRS mileage rate set at 67 cents per mile, 1,000 miles of driving would equate to $670!
As a result, accurately capturing mileage and maintaining an IRS-compliant mileage log can make a big difference in your bottom line. To see how much the miles you've driven are worth, use our free mileage calculator
Related: Mileage Log Requirements | Everlance
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