Section 5 – IRS mileage rates for 2021

Parteek Singh

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
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
Jul 1 – Dec 31, 2011	55.5	14	23.5
Jan 1 – Jun 30, 2011	51	14	19
2010	50	14	16.5
2009	55	14	24
Jul 1 – Dec 31, 2008	58.5	14	27
Jan 1 – Jun 30, 2008	50.5	14	19
2007	48.5	14	20
2006	44.5	14	18
2005	40.5	14	15
2004	37.5	14	14
2003	36	14	12
2002	36.5	14	13
2001	34.5	14	12
2000	32.5	14	10
1999	31	14	10
1998	32.5	14	10
1997	31.5	12	10

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.