If you own and operate a vehicle in the United States, you may be eligible to claim a tax deduction for mileage. The Internal Revenue Service (IRS) sets the standard mileage rate each year based on the cost of operating a vehicle in the country.
However, the rate varies depending on whether the vehicle is used for business purposes, charitable work, or medical and military moving. This article provides an in-depth look at the IRS standard mileage rate for 2024, including tax deduction rules and historical rates.
What is the Standard Mileage Rate in the US?
Under the Tax Cuts and Jobs Act of 2017 (TCJA), taxpayers can claim a tax deduction based on the operating and owning of a vehicle. The IRS allows taxpayers to calculate the cost of operating their vehicles using two methods: the actual expenses method and the standard mileage rate method.
The actual expenses method includes deducting actual expenses like gas, oil, insurance, legal payments, etc. The standard mileage rate method is simpler and involves multiplying the number of miles driven by the standard mileage rate.
The standard mileage rate, also known as the deductible mileage or per diem rate, includes costs for wear and tear, insurance, oil, gas, license, and registration fees. The IRS adjusts this rate annually based on the cost of operating a vehicle.
The rates are categorized into three parts: business purposes, charity work, and military or medical moving. Note that the deduction for moving expenses is now only applicable to active military members moving under orders.
How to Calculate Your Mileage Deduction
To calculate your mileage deduction:
- Record Your Business Mileage: Keep an IRS-compliant record of your business mileage throughout the year.
- Multiply by the Standard Rate: At the end of the tax year, multiply your total business mileage by the standard mileage rate for that year.
- Claim Your Deduction: Include this amount as a deduction on your tax return.
IRS Mileage Rate 2024: Quick Details
- Post Title: IRS Mileage Rate 2024
- Country: USA
- Department: Internal Revenue Service
- Category: Finance
- Mileage Rate for Business: 67 cents per mile
- Year: 2024
- Official Website: IRS.gov
IRS Standard Mileage Rate for 2024
The IRS has issued the standard mileage rate for 2024 to assist taxpayers in calculating deductible costs for business, charity, medical, or military moving purposes. Here are the 2024 rates:
- Business Purposes: 67 cents per mile (up 1.5 cents from 2023)
- Charity Purposes: 14 cents per mile (unchanged from 2023)
- Military or Medical Moving: 21 cents per mile (down 1 cent from 2023)
These rates apply to electric and hybrid vehicles as well as gasoline and diesel-powered vehicles. Taxpayers are reminded that moving expense deductions are only available to active military members moving under orders to a permanent change station.
Standard Mileage Rate Over the Years
The IRS sets the standard mileage rate annually based on the cost of operating a vehicle in the US. The table below shows the rates for the past several years:
| Year | Business (cents per mile) | Charity (cents per mile) | Medical or Military Moving (cents per mile) |
|---|---|---|---|
| 2024 | 67 | 14 | 21 |
| 2023 | 65.5 | 14 | 22 |
| 7/1/2022-12/31/2022 | 62.5 | 14 | 22 |
| 1/1/2022-6/30/2022 | 58.5 | 14 | 18 |
| 2021 | 56 | 14 | 16 |
| 2020 | 57.5 | 14 | 17 |
| 2019 | 58 | 14 | 20 |
| 2018 | 54.5 | 14 | 18 |
| 2017 | 53.5 | 14 | 17 |
| 2016 | 54 | 14 | 19 |
| 2015 | 57.5 | 14 | 23 |
| 2014 | 56 | 14 | 23.5 |
| 2013 | 56.5 | 14 | 24 |
| 2012 | 55.5 | 14 | 23 |
| 7/1/2022-12/31/2011 | 55.5 | 14 | 23.5 |
| 1/1/2011-6/30/2011 | 51 | 14 | 19 |
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Additional Rules for Standard Mileage Rate
Before the implementation of the TCJA in 2017, employees could claim tax deductions for mileage not reimbursed by their employer. However, the TCJA suspended this deduction for employees. Now, the following categories are eligible to claim mileage tax deductions:
- Small Business Owners and Self-Employed Workers: Includes contractors, drivers, and other self-employed individuals.
- Fee-Based Government Officials and Armed Forces Reservists: These individuals can still claim deductions.
- Charity Workers: Individuals performing charity work can claim mileage deductions at the specified rate.