The IRS Mileage Rate 2021
The 2021 mileage reimbursement rate 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.
Log your business travel and calculate your reimbursements automatically. The Driversnote mileage tracking app is always up to date on laws and the IRS mileage rates.
IRS mileage rate 2021
The IRS has lowered the cents per mile reimbursement for business, medical and moving mileage, while charity mileage remains deductible 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 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 federal 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 reimbursement rates. 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
- Calculate Your Reimbursement
- Is Reimbursement Taxed?
- How The IRS Mileage Rate Is Set
- Current Mileage Rates
- How To Claim Your Mileage On Taxes In 5 steps
- Mileage Log Requirements
- For Self-Employed
- IRS Medical And Charitable Mileage
- California Mileage Reimbursement
- For Employees
- For Employers
- IRS Mileage Rate 2022
- IRS Mileage Rate 2021
- Mileage Rates 2020