IRS Increases Standard Mileage Rates for 2024

The IRS has increased optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes in 2024.

Beginning Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

• 67 cents per mile driven for business use, up 1.5 cents from 2023
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, down one cent from 2023
• 14 cents per mile driven in service of charitable organizations (set by statute and unchanged from 2023)

The rates apply to electric and hybrid-electric vehicles and gasoline and diesel-powered vehicles.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile.

The rate for medical and moving purposes is based on the variable costs.

Deduction Requirements

Taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.

Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

If taxpayers chose to use standard mileage rates, they must opt to do so in the first year the car is available for business use.

Taxpayers can calculate the actual costs of using their vehicle, rather than using standard mileage rates. 

In later years, they can choose either the standard mileage rate or actual expenses.

Taxpayers can calculate the actual costs of using their vehicle, rather than using standard mileage rates. 

Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.