Business mileage reimbursement rate
The business mileage reimbursement rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction, for Federal income tax purposes under the Internal Revenue Code, at 26 U.S.C. § 162, for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount, or an amount computed using the standard mileage rate, whichever is greater.
The business mileage reimbursement rate is used by some employers for computing employee reimbursement amounts when an employee operates a motor vehicle not owned by the employer for the employer's business purposes. The General Services Administration (GSA) sets the rate for federal jobs. In general, the GSA rate matches the annual rate set by the IRS, although by law the government employee reimbursement rate cannot exceed the mileage rate set by the IRS for business deductions.[1]
Reimbursement by an employer on a per-mile basis is also used in other countries; it offers a similar simplification to payment of subsistence per diem.
Reimbursement rates since 1991
[edit]| Year | Automobile Rate (IRS) | Privately-Owned Aircraft Rate (GSA) | Motorcycle |
|---|---|---|---|
| 1991 | 27.5 cents/mile | ||
| 1992 | 28.0 cents/mile | ||
| 1994 | 29.0 cents/mile | ||
| 1995 | 30.0 cents/mile | ||
| 1996 | 31.0 cents/mile | ||
| 1997 | 31.5 cents/mile | ||
| 1998 | 32.5 cents/mile | ||
| Jan–Mar 1999 | 32.5 cents/mile | ||
| Apr–Dec 1999 | 31.0 cents/mile | ||
| 2000 | 32.5 cents/mile | ||
| 2001 | 34.5 cents/mile | ||
| 2002 | 36.5 cents/mile | ||
| 2003 | 36.0 cents/mile | ||
| 2004 | 37.5 cents/mile | ||
| Jan–Aug 2005 | 40.5 cents/mile | ||
| Sep–Dec 2005 | 48.5 cents/mile | ||
| 2006 | 44.5 cents/mile | ||
| 2007 | 48.5 cents/mile | ||
| Jan–June 2008 | 50.5 cents/mile | ||
| July–Dec 2008 | 58.5 cents/mile | ||
| 2009 | 55.0 cents/mile | $1.24/mile | |
| 2010 | 50.0 cents/mile | $1.29/mile | |
| Jan–June 2011 | 51.0 cents/mile | $1.29/mile | |
| July–Dec 2011 | 55.5 cents/mile | $1.29/mile | |
| 2012 | 55.5 cents/mile | $1.31/mile | |
| 2013 | 56.5 cents/mile | $1.33/mile | |
| 2014 | 56.0 cents/mile | $1.31/mile | |
| 2015 | 57.5 cents/mile | $1.29/mile | |
| 2016 | 54 cents/mile | $1.17/mile | |
| 2017 | 53.5 cents/mile | $1.17/mile | |
| 2018 | 54.5 cents/mile[2] | TBA | |
| 2019 | 58 cents/mile[3] | ||
| 2020 | 57.5 cents/mile[4] | $1.27/mile | 54.5 cents/mile |
| 2021 | 56 cents/mile[5] | ||
| Jan–June 2022 | 58.5 cents/mile | ||
| July–Dec 2022 | 62.5 cents/mile[6] | ||
| 2023 | 65.5 cents/mile[7] | ||
| 2024 | 67 cents/mile[8] | ||
| 2025 | 70 cents/mile[9] |
References
[edit]- IRS.gov Standard Mileage Rate Overview
- IRS Document 463; Form 2106, Internal Revenue Service, U.S. Dept. of the Treasury (for applicable years); IRS Rev. Proc. 2005–78; IRS Rev. Proc. 2006–49; IRS Rev. Proc. 2008–72.
- "Privately Owned Vehicle (POV) Mileage Reimbursement Rates". General Services Administration. Retrieved 2008-10-17.
- Revenue Procedure 2008–72, I.R.B. 2008–50, November 24, 2008, Internal Revenue Service, U.S. Dep't of the Treasury.
- "IRS Announces 2011 Standard Mileage Rates". Internal Revenue Service. 2010-12-03. Retrieved 2010-12-15.
- "IRS Announces 2012 Standard Mileage Rates". Internal Revenue Service. 2011-12-09. Retrieved 2011-12-14.
- "Standard Mileage Rates for 2013". Internal Revenue Service. 2012-11-21. Retrieved 2012-11-21.
- "2014 Standard Mileage Rates". Internal Revenue Service. 2013-12-06. Retrieved 2013-12-20.
- "Privately Owned Vehicle Mileage Rates (Archived)". 2016-03-20. Retrieved 2016-03-20.
- IRS increases mileage rate for remainder of 2022
- IRS Mileage Rate 2024
- IRS Mileage Rate 2025
- ^ Travel and Subsistence Expenses; Mileage Allowances, 5 U.S.C. 5704(a)(1), Available from: US Code Main Page Archived January 30, 2009, at the Wayback Machine, Government Printing Office; Accessed January 28, 2009. "In any year in which the Internal Revenue Service establishes a single standard mileage rate for optional use by taxpayers in computing the deductible costs of operating their automobiles for business purposes, the rate per mile established by the Administrator (of the GSA) shall not exceed the single standard mileage rate established by the Internal Revenue Service."
- ^ IRS Notice 2018-03.
- ^ IRS Notice 2019-02.
- ^ IRS Notice 2020-05
- ^ IRS Notice 2021-02
- ^ "IRS increases mileage rate for remainder of 2022 | Internal Revenue Service".
- ^ "IRS issues standard mileage rates for 2023; business use increases 3 cents per mile | Internal Revenue Service". www.irs.gov. Retrieved 2023-01-19.
- ^ "IRS Mileage Rates 2024 | Everlance". www.everlance.com. Retrieved 2023-12-15.
- ^ "IRS Mileage Rates 2025 | Everlance". www.everlance.com. Retrieved 2024-12-19.
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