IRS Standard Mileage Rate - Updated

Annual business mileage rate - updated to 2016 rate, with previous years

IRS Standard Mileage Rates
IRS Standard Mileage Rates. Westend61/Getty Images

Driving for Uber or another ride sharing company? Driving for your own business? Driving a truck as an independent? No matter what kind of business driving you do, you need to know the IRS standard mileage rate for the year, in order to do your business taxes. 

The Current IRS Standard Mileage Rates - Business, Moving, and Charitable

The 2016 standard mileage rate has been set by the IRS. 

This is the rate you will use when preparing your 2016 business taxes, in 2017.

See below for the 2015 business mileage rate, which you will use to file your 2015 business taxes in 2016. 

The Standard Mileage Rate is the maximum per-mile rate allowed by the IRS for calculating mileage for operating a car or truck for business purposes.

Important: Use the standard mileage rate for the year of the tax return, not the year you are working on the return. For example, use the 2015 rate for 2015 business tax returns, even though you are working on the return in 2016.

2016 Business, Medical/Moving, and Charitable Driving Rates (for 2016 Taxes)

  • 54 cents per mile for business miles driven (down from 57.5 cents in 2015)
  • 19 cents per mile driven for medical or moving purposes (down from 23 cents in 2015)
  • 14 cents per mile driven in service of charitable organizations (fixed by Congress, never adjusted for inflation)

2015  Mileage Rates (for 2015 Taxes)

  • 57.5 cents per mile for business miles
  • 23  cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Standard Mileage vs. Actual Costs - Which to Use? 

The first step in calculating business mileage is determining which method to use. Businesses have two options for taking expense deductions for mileage: the standard mileage rate or actual costs.

Each has advantages and disadvantages. Read more about the differences between using standard mileage or calculating actual costs for business mileage. 

Calculating Business Mileage Expenses

After you have determined which mileage expense method to use, you must then do a calculation to determine the actual expense to deduct. R 

Adding Business Mileage Expenses to Your Business Tax Return

Finally, after you have the calculation for your business mileage for the tax year, you must add the mileage calculation to your business tax return. 

Before you prepare your business tax return, you will need to gather information on the use of your vehicle for business purposes. Depending on how you record mileage - using the IRS standard deduction, or actual miles - you will need specific information.

First you will need to determine if you should take the IRS standard mileage deduction or use actual expenses. The method you choose depends on how many miles you traveled and how much you used the vehicle.

Read my FAQ "Which is Best..." for more information to help you decide.

Using the Standard Mileage Deduction

If you are taking the IRS standard mileage deduction, you will need to provide a listing of all business trips, reason, dates, and mileage.

Using the Actual Expense Method

If you are taking actual expenses, you will need complete information on all expenses associated with your business use of the vehicle, including:

  • Gasoline purchases
  • Oil and maintenance expenses
  • Interest expenses on the vehicle loan
  • Or, lease payments for the tax year
  • Annual depreciation on the vehicle
  • Registration fees
  • Insurance
  • Repairs
  • Tolls
  • Tires
  • Garage rent
  • Parking fees

Finally, add your business mileage expense to your business tax return: 

On Schedule C for small businesses: Enter car and truck expenses on Line 9. Then, you must also complete Part IV: Information on Your Vehicle, unless you are depreciating your business car. 

Read more about business mileage. 

 

2014 Business Mileage Rates

  • 56  cents per mile for business miles
  • 23.5 cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

2013 Business Mileage Rates

  • 56.5 cents per mile for business miles
  • 24 cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

2012 Business Mileage Rates

  • 55.5 cents per mile for business miles driven
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

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