Each year, the IRS releases a new standard mileage rate. The 2024 mileage rate was announced in December
Business: 67 cents per mile
Medical / Moving: 21 cents per mile
Charity: 14 cents per mile
The IRS calculates the business rate based on an annual study of the fixed and variable costs of owning and operating a car. So when rates change, it’s due to common car costs—like gas prices or insurance premiums—changing.
For 2024, the IRS increased the standard mileage rate for business by 1.5 cents compared to the 2023.
Ongoing high costs, especially for fixed costs like insurance, likely contributed to the decision to raise the rate again for 2024. The new rate of 67 cents per mile is the highest standard mileage rate for business that has ever been set.
Based on variable costs, the medical dropped to 21 cents per mile per mile, and the charity/moving rate remained the same at 14 cents. For more information on the 2024 rate, and how it's determined, check out our 2024 IRS Mileage Rate page.
Beginning January 1, businesses reimbursing their employees for personal use of their vehicle using a Cents Per Mile program should look at updating their rate to the new standard, or if using your own rate, increase it to reflect current costs, up to the standard mileage rate. As the IRS reminds us, "under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses." Employees likely won't be too happy if they're getting reimbursed for less than their actual costs as they can't deduct the difference on their taxes.
If you're an independent contractor or self-employed, you will be able to deduct 65.5 cents per mile driven from your 2023 taxes, and 67 cents in 2024. That deduction can really add up, so make sure you track every mile you drive for work.
Want more information? Head to the IRS’s page on Standard Mileage Rates.
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