If you own and operate a vehicle in the United States of America, then you are eligible to claim a tax deduction for mileage. The Internal Revenue Service (IRS) set the standard mileage rate every year based on the cost of operating a vehicle in the country. However, the standard mileage rate may vary depending whether the vehicle is used business purpose, charitable work along with the medical or military moving. In simple terms, the standard mileage rate is defined as the cost per mile for the taxpayers who deduct their expenses made on the vehicle for any of the aforementioned purpose.
If you are a taxpayer in the country, then you have an option to calculate the expenses that you are eligible to deduct by using standard mileage rate. In 2023, the IRS mileage rate was 65.5 for business purpose or self-employed. Apart from it, the mileage rate for charity uses and medical or military moving in 2023 was set at 14 and 22 respectively by the IRS. On continuing to this post, you will be able to acquire the important attributes on the IRS standard mileage rate in 2024 including mileage tax deduction rules and mileage rate over the years. Continue reading the post, so that you cannot miss any updates.
What is Standard Mileage Rate in US?
The taxpayers are allowed for a tax deduction based on the operating and owning a vehicle under the Tax Cuts and Jobs Act of 2017 (TCJA). The IRS allows the taxpayers to calculate the cost of operating their vehicles based on two major methods. First one is the actual expenses method which includes deducting actual expenses like gas, oil, insurance, legal payments, etc. The second one includes the standard mileage rate which is considered as the simplest method to calculate the mileage rate for business purpose.
The standard mileage rate is referred to the cost per mile which can be deducted by a taxpayer. It is also known as deductible mileage or per diem. The rate basically includes costs of wear and tear, insurance, oil, gas, license and other registration fee. The IRS makes adjustments in mileage rate each year as per the cost of operating vehicle. The rates are categorized into three parts; for business purpose, charity work and military or medical moving. However, the deduction for the moving expenses is not applicable now apart from the active military members moving. You can calculate your tax deductions of the year based on the points mentioned below:
- At first, you must have a record of your business mileage throughout the year in IRS compliant records.
- Once the tax year is completed, you are allowed to multiply your driven mileage by the standard mileage rate of the particular year in order to gain insight on the deduction you are eligible to claim.
- In the end, you are eligible to claim your deduction at the time of your tax return.
IRS Mileage Rate 2024 Quick Details
| Post title | IRS Mileage Rate in 2024 |
| Country | The USA |
| Department | Internal Revenue Service |
| Category | Finance |
| Mileage rate for business | 67 cents per mile |
| Year | 2024 |
| Official website | www.irs.gov |
IRS Standard Mileage Rate in 2024
The IRS has issued the standard mileage rate for 2024 in order to provide an assistance to the taxpayers while calculating the deductible costs of an automobile for business, charity, medical or military moving purposes. You can check the rate as per your concerned purpose in the following points:
- As of 2024, the IRS has set the standard mileage rate for business purpose to 67 cents per mile which is 1.5 cent up from 2023.
- For charity purpose, the mileage rate is set at 14 cents per mile driven which remain unchanged from 2023.
- In addition to it, for military or medical moving purpose, the rate is set at 21 cents per mile driven in 2024 which is decrease of 1 cent from 2023.
The aforementioned standard mileage rates are applied to the electric and hybrid automobile along with the gasoline and diesel powered vehicles. As per the IRS guidelines, it is to notify to the taxpayers that they are not eligible to claim tax deduction for moving expenses unless they are active member of Armed Forces moving under orders to permanent change station.
Standard Mileage Rate Over the Years
The IRS decides the standard mileage rate each year which is based on the cost of owning and operating a vehicle in the United States of America. As mentioned previously, the mileage rate is categorized into three types. You can have a look at the IRS standard mileage rate for all three categories over the years in the following table. It is to notify that the below mentioned data is based on the data given by the Internal Revenue Service:
| Year/period | for business | Charity use | Medical or military moving |
| 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 |
IRS Standard Mileage Rate – Additional Rules
Initially, before the implementation of Tax Cuts and Jobs Act of 2017 (TCJA), employees were allowed to claim tax deduction for mileage that were not reimbursed by the employer. However, after the federal government implemented the TCJA, it suspended the deduction for employees and the following categories are now allowed to claim the tax deduction for mileage:
- Small business owners and other self-employed workers like contractors, drivers, etc.
- Fee based government officials and reservists in armed forces are also eligible to claim the tax deduction.
- In addition to it, those who are doing charity work are also eligible.
| Sass News Home | Click Here |
As a Editor at Sass News Portal ,Lara skillfully combines her knowledge of political economy and personal finance to empower readers with crucial insights and answers to their most pressing questions. With her finely honed analytical skills and a commitment to providing accurate coverage of today’s pressing issues, Lara strives to engage readers across a wide range of topics.