Section 5 – IRS mileage rates for 2021

irs mileage rates 2020 2021 2022

As of January 1, 2021, the mileage rates determined by the IRS, with the rate for businesses being 56 cents, the rate for medical is 16 cents and the rate for driving in relation to charitable organizations are 14 cents. These rates have changed for 2021.

The published rates cover the cost of individuals using their personal vehicles for things related to business. Whether the individual is an employee and is using their personal vehicle for employer-related activities or the individual is self-employed, the IRS publishes a rate for business mileage. It’s worth noting that employers may or may not use the rate published by the IRS, but if the employer does the mileage reimbursement for their employee that is above the rate, the employee is required to pay income tax on that additional amount.

There are different rules for individuals who are using their personal vehicles for business compared to using them for medical or charitable purposes. There are additional sections associated with this hub that includes information for employees, employers, and the self-employed/business owners.

IRS Mileage Rates For 2021

Beginning January 1, 2021, the summary for the standard mileage rates for vehicles, including vans, pickups, and panel trucks, are as follows:

  • $0.56 per mile for business
  • $0.16 per mile for medical purposes
  • $0.17 per mile for moving (used only for Armed Forces individuals on active duty)
  • $0.14 per mile for service of charitable organizations

If you want more detailed information about the standard mileage rates, you can find it on the IRS website.

calculate-irs-mileage-rate-2020-2021-2022

Previous Years’ Standard Mileage Rates

The IRS standard mileage rates typically change each year, usually going up or down by a cent or two. Here are the mileage rates since 1997:

Period Business Charity Medical & moving
202057.51417
2019581420
201854.51418
201753.51417
2016541419
201557.51423
2014561423.5
201356.51424
201255.51423
Jul 1 – Dec 31, 2011 55.51423.5
Jan 1 – Jun 30, 2011 511419
2010501416.5
2009 551424
Jul 1 – Dec 31, 2008 58.51427
Jan 1 – Jun 30, 2008 50.51419
200748.51420
200644.51418
200540.51415
200437.51414
2003361412
200236.51413
200134.51412
200032.51410
1999311410
199832.51410
199731.51210

How Are Rates Determined?

Each year, the IRS takes the average cost of owning and operating a vehicle and uses it to increase or decrease a given rate. The mileage rates for businesses are also determined by the IRS. These costs include both fixed and variable mileage expenses. The mileage rate for charity has been unchanged since 1998 and is a rate that is set by a statute.

How to Properly Track Mileage

Proper mileage tracking is an often tedious and time-consuming process for employers, employees, contractors, freelancers, and business owners of all types. Using a business expense tracking app like TripLog makes calculating your mileage easier and faster. You can download TripLog for free on iOS or Android, or use our web client.

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Mileage Reimbursement Savings Calculator

Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements. See how much TripLog can help you save!

Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

This is the inline help tip! You can explain to your users what this section of your web app is about.

According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

Manual Entry Hours

2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

Estimated Labor Savings

Avg. $25/hr x Manual Entry Hours

$208,334

Total Savings Per Driver

(Labor Savings + Reimbursement Savings) / Number of Drivers

$4,167