The IRS has released the 2016 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
The following chart reflects the new 2016 standard mileage rates compared to the 2015 and 2014 tax year standard mileage rates.
| 2016 | 2015 | 2014 | |
| Business rate per mile | 54.0¢ | 57.5¢ | 56.0¢ |
| Medical and moving rate per mile | 19.0¢ | 23.0¢ | 23.5¢ |
| Charitable rate per mile | 14.0¢ | 14.0¢ | 14.0¢ |
| Depreciation rate per mile | 24.0¢ | 24.0¢ | 22.0¢ |
