2024 Standard Mileage Rate
The Internal Revenue Service has issued the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- Business - .67 cents per mile driven for business use
- Medical / Moving - 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces
- Charitable - 14 cents per mile driven in service of charitable organizations
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
The standard mileage rate for business use 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 on the variable costs.
To use the rate for moving, active-duty members of the Armed Forces must be moving under the orders to a permanent change of station.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
You can still deduct your expenses while driving for business if you use other types of vehicles (including motorcycles and boats), but you must use the actual expenses method.
Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.
For any questions contact Elek & Noss at 440-926-9300.
