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April 26, 2022 - 2 min read

2020 Mileage rate

The 2020 mileage rate was announced by the IRS on Dec 31st, 2019. The rate for business is 57.5 cents per mile, down half a cent from 2019. 

The rates for medical and moving dropped to 17 cents per mile for 2020, while the rate for miles driven in service of charitable organizations remains the same at 14 cents per mile. Scroll further down to see all current and previous mileage rates.

The rates cover the cost of using your personal vehicle for certain things, most commonly for business, but also if you drive for medical, moving, or charitable purposes. Each of these has a different rate and rules.

Be aware that the standard mileage rate is optional — both your state and employer may use different rates. 

If you want to know more, we have written a quick guide for employees on mileage reimbursement, as well as mileage tax deductions for self-employed.

IRS mileage rate 2020

The IRS mileage rates for 2020 for cars (including vans, pickups, and panel trucks) are:

  • $0.575 per mile driven for business
  • $0.17 per mile for trips taken on for medical purposes
  • $0.17 per mile for moving (only Armed Forces on active duty)
  • $0.14 per mile driven in the service of charitable organizations

The IRS announcement came on Dec 31st, 2019 and has additional information about rates and how they apply.

The IRS standard mileage rates for 2019

As of January 1st, 2019, the mileage rates were: 

  • $0.58 per mile driven for business
  • $0.20 per mile for trips taken on for medical purposes
  • $0.20 per mile for moving (only Armed Forces on active duty)
  • $0.14 per mile driven in the service of charitable organizations

Here is the IRS announcement of the 2019 mileage rates.

Who decides the rate, and how?

To determine next year's rate, The IRS looks at the average costs of owning (fixed costs) and operating (variable costs) a vehicle this year.

In short, the rate for business use is based on the average cost of ownership plus the average operating costs of a car, while the rates for moving and medical are based only on the operating costs. The mileage rate for charity set by statute has remained unchanged since 1998.

FAQ

You can use the 2020 mileage rate when claiming mileage for trips that you actually drove in the year 2020. You can't use this mileage rate for trips driven in previous years, 2021 or 2022.
The federal mileage rate is used as a synonym for the IRS mileage rate, which means they are the same. The 2020 mileage rates are 57.5 cents per mile for business purposes, 17 cents per mile for medical and moving purposes, and 14 cents per mile for charity and volunteering mileage.
The 2019 IRS mileage rate was $0.58 per mile for business. Don’t forget to switch to the 2020 mileage rate for your business trips after January 1st, 2020.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal, tax or accounting advisor.