IRS Issues Standard Mileage Rates for 2024
Beginning January 1, 2024 the standard mileage rates for automobiles have been updated.
- 67 cents per mile driven for business use
- 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces
- 14 cents per mile driven in service of charitable organizations
The business use amount noted above is up 2.3% from 2023 while the 21 cents per mile for medical or moving purposes (subject to qualifications) is a 4.5% decrease. The rate for miles driven in service to charitable organizations is set by statute and has remained unchanged since 1998.
The business use rate is most applicable to employers and Schedule C filers. Since the Tax Cuts and Jobs Act, taxpayers cannot take an itemized deduction for unreimbursed business use of their vehicle. Employers in particular will want to make note of the increase and update their reimbursement amount if they follow the standard rate.
If you claim vehicle expenses on your Schedule E rental or your Schedule C trade or business, you have the option of claiming business miles or the actual costs of using the vehicle (gas, insurance, depreciation, etc.). Generally, if you want to use the standard mileage rate you must use it in the first year that the automobile is available. Then, in later years you can choose to use the standard mileage rate or actual expenses to get the greatest benefit. If you choose to use the standard mileage rate in the first year for a leased vehicle you must continue to use the standard mileage rate for the entire lease term of that vehicle, including any renewals.
Source: IRS Notice 2024-08
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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