The IRS recently announced the new 2016 standard mileage rates to be used for travel. The standard business mileage rate is decreased by 3.5 cents while Medical and moving mileage rates are lowered by 4.0 cents. Charitable mileage rates are unchanged.
2016 Standard Mileage Rates
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
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 only on the variable costs. Businesses have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.