UPDATED JAN 21, 2020 • 3 MIN READ
The mileage rates for 2020 were announced by the IRS on Dec 31st and the rate for business is 57.5 cents per mile, which is down half a cent from 2019. The rates for medical and moving dropped to 17 cents per mile, while the rate for miles driven in service of charitable organizations remains the same at 14 cents per mile. Scroll down to see all current and previous mileage rates.
Each year, the IRS issues optional standard mileage rates for the coming year. For the past few years, the announcement was made mid-December, and there is no reason to think this year is any different.
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.
As of January 1st, 2020, the optional standard mileage rates for cars (including vans, pickups, and panel trucks) are:
The IRS's announcement came on Dec 31st, 2019 and has additional information about mileage rates and how they apply.
As of January 1st, 2019, the mileage rates were:
For the calendar year beginning January 1st, 2018 and ending December 31st, 2018, the IRS's optional standard mileage rates for cars (including vans, pickups and panel trucks) were:
The IRS' announcement from 2017 has a few more details, and here are prior mileage rates in cents per mile:
|Period||Business||Charity||Medical & moving|
|Jul 1 - Dec 31, 2011||55.5||14||23.5|
|Jan 1 - Jun 30, 2011||51||14||19|
|Jul 1 - Dec 31, 2008||58.5||14||27|
|Jan 1 - Jun 30, 2008||50.5||14||19|
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 is set by statute and has remained unchanged since 1998.
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.