The IRS recently announced the new 2016 standard mileage rates to be used for travel. The standard business mileage rate is decreased by 3.5 cents while Medical and moving mileage rates are lowered by 4.0 cents. Charitable mileage rates are unchanged.
2016 Standard Mileage Rates
Lower gas prices – good news; lower IRS standard mileage rate deductions – bad news. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business 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 only on the variable costs. Businesses have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
You can find more information at the IRS’s website.