New Update From IRS: Standard Mileage Rate for 2024
Heads up, HR: The standard mileage rate for business use is getting a slight bump in 2024, the IRS recently announced.
The Service bases the standard mileage rate for business use on an annual study of the fixed and variable costs of operating a vehicle.
Here are all the details you need to know from Notice 2024-08.
Standard mileage rate for 2024
Beginning on Jan. 1, 2024, the standard mileage rate will be 67 cents per mile driven for business use, up 1.5 cents from 2023.
When you’re relying on the business standard mileage rate, details can get blurry as one calendar year ends and the next begins. As a best practice, make sure to use the rate that was in effect when the employees were on the road – not when they submitted their expense reports.
The notice also released the portion of the business standard mileage rate treated as depreciation. That’ll be 30 cents per mile, up from 28 cents per mile.
Other mileage rates
As for two other types of rates, the IRS announced a decrease from 22 to 21 cents per mile. That’s for travel related to:
• receiving medical care, and
• moving (until 2026, this is for qualified active-duty service members only).
The rate for miles driven in service to charitable organizations remains 14 cents per mile. This rate is set by statute.
Max cost of employer-provided vehicles
For employer-provided vehicles, the standard automobile cost can’t exceed $62,000, up from $60,800. That’s important for employers computing vehicle allowances under a fixed and variable rate plan.
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