New Business Mileage Reimbursement Rates in 2020
On Dec. 31. 2019, the Internal Revenue Service (IRS) issued the 2020 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 57.5 cents per mile driven for business use (down from 58 cents in 2019);
- 17 cents per mile driven for medical or moving purposes (down from 20 cents in 2019); and
- 14 cents per mile driven in service of charitable organizations (unchanged).
The following table summarizes the optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes.
