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December 14, 2023 at 03:39 PM
The Internal Revenue Service said Thursday that the optional standard mileage rate for business use will increase to 67 cents a mile in 2024, up 1.5 cents from 2023.
Standard mileage rates are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Come Jan. 1, the rates for the use of a car (also vans, pickups or panel trucks) will also be:
- 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the U.S. armed forces, a decrease of 1 cent from 2023; and
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.
The rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.
Under the Tax Cuts and Jobs Act, “taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses,” the IRS states in Notice 2024-08.
Taxpayers, the IRS states, “also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.”
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile, according to the IRS, and the rate for medical and moving purposes is based on the variable costs.
