The IRS mileage rate 2021
The mileage reimbursement rate for 2021 was announced by the IRS on Dec 22nd, 2020, setting the 2021 mileage rate at 56 cents per mile - down 1.5 cents from 2020.
The rates for medical and moving dropped to 16 cents per mile, while the rate for charity mileage remains the same at 14 cents per mile.
IRS mileage rates 2021
This year, the IRS has lowered the cents per mile reimbursement for business, medical and moving mileage, while charity mileage remains reimbursed at the same rate.
- $0.56 per mile for business-related driving
- $0.16 per mile for medical purposes
- $0.16 per mile for moving (only for Armed Forces on active duty)
- $0.14 per mile for charity mileage
Be aware that the 2021 mileage rate is optional — both your state and employer may use different rates.
The IRS's announcement came on Dec 22nd, 2020 and has additional information about mileage rates and how they apply. You can use the IRS mileage rate for 2021 to calculate your mileage reimbursement for 2021. Keep in mind that the business mileage rate 2020 only applies to trips taken in the 2020 year.
What does the IRS mileage rate 2021 cover?
The federal mileage rate 2021 takes into account both the variable and fixed costs of operating a vehicle, such as gas, oil, tires, maintenance, and repairs, as well as the fixed expenditures, such as insurance, registration, and depreciation or lease payments. Parking and tolls are not included in the mileage prices. For any trips taken before January 2021, you should be using the federal mileage rate 2020 which was $0.575 per mile driven for business.
The federal mileage rates in 2021 for charity, medical and moving-related driving
The charity mileage rate for 2021 is 14 cents per mile, while the 2021 milege rate for medical and moving mileage is 16 cents per mile.
How to automate your mileage logbook
IRS Mileage Guide
- Mileage rates 2020
- IRS mileage rate 2021
- IRS mileage rate 2022
- Is reimbursement taxed?
- IRS medical and charitable mileage
- For employers
- For employees
- Mileage log requirements
- What is the IRS mileage rate
- Calculate your reimbursement
- Current mileage rates
- For self-employed