Attention drivers, the 2024 standard mileage rates are out. The IRS just announced the increased rates, which are used for determining the deduction for the costs of operating a vehicle for various business, charitable, moving, or medical reasons.

What are the changes for 2024?

Starting January 1, 2024, the standard mileage rates (for use of a car, van, pickup or panel truck) are:

• 67 cents for business miles driven (up from 65.5 cents in 2023). 30 cents will be treated as depreciation for 2024 (up from 28 cents per mile for 2023)

• 21 cents per mile driven for medical or moving purposes (down from 22 cents in 2023). Make note that the moving expense deduction is repealed except for U.S. armed forces members on active duty who move pursuant to a military order or permanent change of station.

• ­14 cents per mile driven in service of charitable organizations (no change)

How are the rates calculated?

There are various factors that influence the standard mileage rates, including:

• Gas and oil prices

• Insurance costs

• The state of the economy

• The expected cost of typical wear and tear on a vehicle

Hence the rates are purposed to go over and above the amounts a consumer pays solely for gas.

Is the standard mileage rate the only way to gauge deductions?

No, taxpayers always have the option to claim deductions based on the actual costs of using a vehicle, as an alternative to using the standard mileage rates.

The new rates are effective as of January 1, 2024.

Questions on the standard mileage rates for 2024? Contact any member of our Tax Services Team.