Section 5 – IRS mileage rates for 2021

As of January 1, 2020, the mileage rates determined by the IRS, with the rate for business being 57.5 cents, the rate for medical is 17 cents and the rate for driving in relation to charitable organizations are 14 cents.

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 his/her 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 of 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 it for medical or charitable purposes. There are additional sections associated with this hub that includes information for employees, employers and 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, is 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.

Previous Years’ Standard Mileage Rates

The IRS standard mileage rates typically change each year, usually going up by a cent or two but sometimes coming down. Here, the mileage rates for the two previous years are listed below:

For 2020

  • $0.575 per mile for business
  • $0.17 per mile for medical purposes
  • $0.17 per mile for moving (used only for Armed Forces on active duty)
  • $0.14 per mile for service of charitable organizations

For 2019

  • $0.58 per mile for business
  • $0.20 per mile for medical purposes
  • $0.20 per mile for moving (used only for Armed Forces on active duty)
  • $0.14 per mile for service of charitable organizations

More information for 2019 rates can be found on the IRS website. Make the use of IRS website

For 2018

  • $0.54.5 per mile for business
  • $0.18 per mile for medical purposes
  • $0.18 per mile for moving (used only for Armed Forces on active duty)
  • $0.14 per mile for service of charitable organizations

More information for 2018 rates can be found on the IRS website.

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 costs of owning and operating a vehicle. These costs include both fixed and variable mileage expenses. The combination of the average costs of owning and operating a vehicle, for the year, the mileage rate for business is determined by the IRS. The mileage rate for charity has been unchanged since 1998 and is a rate that is set by statute.  

How to Properly Track Mileage

Proper Tracking mileage is often a tedious and time- consuming process for employers, employees, contractors, freelancers and business owners. Make the use of a business expense tracking app such as TripLog for making the mileage calculation easier and faster. An affordable and easy-to-use app that is considered as one of the best mileage app trackers for businesses.

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