Current IRS Standard Mileage Rates: 2021

Each year, the IRS releases a new standard mileage rate. The IRS calculates the business rate based on an annual study of the fixed and variable costs of operating a car. So when rates change, it’s due to common car costs—like gas prices or insurance premiums—changing. (The medical and moving rates are just based on variable costs.) 

Here are the mileage rate details for this year (2021):

Business: 56 cents per mile
Charity:
14 cents per mile
Medical / Moving:
16 cents per mile

Note: The business mileage rate reflects a 1.5 cent decrease from 2020, suggesting that the costs of operating a car have relatively decreased.  

Want more information? Head to the
IRS’s page on the Standard Mileage Rates.

The two most common ways to use the standard mileage rate include:

  • For self-employed tax deductions. Self-employed people can track mileage for the tax year with a tracking app (like Everlance). At tax time, multiply your year’s work mileage x the standard mileage rate to calculate your deduction. (1,000 business miles x $.56 standard mileage rate for business = $560 deduction)
  • For employee mileage reimbursements. Companies can use the Standard Mileage Rate reimbursement method (work miles X standard mileage rate for business = reimbursement) to calculate how much to reimburse employees for work mileage.

Want to easily manage your work mileage?

A mileage tracker like Everlance is like your personal assistant, creating detailed mileage logs of your work trips and lists of expenses for you. Try it today.