IRS Mileage Rates
The Internal Revenue Service has issued the 2016 standard mileage rates used to calculate the deductible costs of operating an automobile for business or charitable purposes.
Beginning on January 1, 2016, the standard mileage rates will be:
- 54 cents per mile for business miles driven; down from 57.5 cents in 2015. This rate represents the maximum rate an organization can reimburse an employee without the reimbursement being treated as taxable income.
- 14 cents per mile driven in service of charitable organizations. This represents the rate an individual (not an employee) can use on their tax return to deduct miles driven in service of a charitable organization.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.