The federal mileage rate, or standard mileage rate, is set by the IRS to calculate deductible business and travel expenses for personal vehicle use. It’s updated annually and gives individuals and businesses a simple way to claim mileage reimbursement on tax returns.
What are the benefits of using the federal mileage rate?
The standard rate makes things easier. It:
- Simplifies expense calculations with a fixed rate.
- Saves time by reducing the need for detailed record-keeping and complex math.
- Lowers taxable income by allowing mileage deductions.
What is the federal mileage rate for 2024?
The rate depends on why you’re driving. For 2024, the IRS set these rates:
- $0.67 per mile for business use.
- $0.21 per mile for medical or moving purposes (active-duty military only).
- $0.14 per mile for charitable work.
How is the federal mileage rate determined?
The IRS bases the rate on an annual study of vehicle costs. It factors in gas prices, depreciation, maintenance, and other expenses. These rates apply to cars, vans, pickups, panel trucks, hybrids, and electric vehicles.
Using the federal mileage rate in your tax return
To claim mileage deductions, you’ll need solid records. That means logging dates, destinations, reasons for travel, and miles driven. Keeping accurate records is key to supporting deductions and avoiding issues if the IRS asks for proof.
