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IRS Mileage Rate 2024
November 20, 2023 - 2 min read

IRS Mileage Rate 2024

With another year coming to an end, we look forward to the IRS announcement of how much the 2024 mileage rate will be. The IRS announces the revised rate sometime in December each year. You can then use the 2024 mileage rate to calculate your mileage deductions or work reimbursement for business-related driving with your personal car for that year.

Will the IRS increase the 2024 mileage rate?

The still current 2023 mileage rate saw an increase of 3 cents per business mile compared to the previous year in a bid to cover growing fixed and variable vehicle expenses in the US. 

The IRS revises the mileage rate each year to adjust it according to the expenses those who drive for work face. These expenses include the cost of gas during the previous year (in this case, 2023), car insurance, transportation inflation and various car maintenance costs. It is worth noting that average gas prices have been lower throughout this year compared to 2022 according to the Energy Information Administration, but insurance and maintenance costs have increased throughout 2023.

With all this said, it is possible that the IRS will increase the 2024 mileage rate to account for the higher costs associated with owning and running a vehicle.

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What is the current mileage rate?

The current 2023 IRS mileage rates are:

  • 65.5 cents per mile for business purposes
  • 22 cents per mile for medical and moving purposes
  • 14 cents per mile for charitable purposes

While the tax authority increased the rate per mile for business driving, the Medical, Moving, and Charity rates remained the same as in 2022. Find out more about the 2023 IRS mileage rate.

How to use the 2024 IRS mileage rate

Once announced, the 2024 mileage rate will be applicable from January 1st, 2024 to December 31st, 2024 for those who drive eligible miles for work purposes. The cents per mile rate set by the IRS is the highest self-employed individuals will be able to deduct at tax time for business-related driving, and the highest tax-free reimbursement employees can receive from work for business driving with a personal vehicle.

Note that as an employed individual, if your employer doesn’t reimburse you for your vehicle expenses, you won’t be able to claim a tax deduction for business mileage. Employers may also choose to reimburse you at a higher or lower rate than the standard IRS one - this rate is only advisable and it is up to your employer’s discretion to decide if they wish to use it or not. Find out more about mileage reimbursements for employees.

If you are self-employed, check out our dedicated guide to claiming mileage as a self-employed individual.

Compliant records for your mileage reimbursement

You can use a physical logbook or a spreadsheet to track your business travel. If you drive often, this task can become rather time-consuming - consider automating the process of logging your mileage. With the Driversnote mileage tracking app, you can create compliant mileage reports with just a few taps, anytime you need them. The app will track your trips automatically, freeing up your time and ensuring you don’t miss any trips eligible for mileage reimbursement.

FAQ

The IRS revises the mileage rate each year to determine if it should be raised based on the costs of owning and running a vehicle throughout the previous year. With higher insurance and maintenance costs for vehicles in 2023, we expect that the IRS might slightly increase the 2024 mileage rate.
The standard mileage rates are calculated based on the average costs in the US of owning and driving a vehicle such as gas, insurance, maintenance and tyre costs. If your employer is using a different mileage rate to the IRS standard one, it may be due to being in a state with lower costs for vehicles.

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.

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