On December 14, 2023, the Internal Revenue Service (IRS) announced the mileage reimbursement rates for 2024. Beginning on January 1, the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes will be the following:
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67 cents per mile driven for business use, up 1.5 cents from 2023
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21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023
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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, hybrid-electric, gasoline, and diesel-powered vehicles.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the vehicle is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.
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