The 2021 federal mileage reimbursement rates have arrived. These are issued by the Internal Revenue Service (IRS) to calculate costs for operating vehicles for business, charitable, medical or moving purposes. In summary, the business mileage rate decreased one and a half cents for business travel and one cent for medical and certain moving expenses from 2020.
2021 IRS Mileage Reimbursement Rates
Beginning January 1, 2021, standard mileage rates for the use of a car, van, pickups or panel trucks will be:
- 56¢ per mile driven for business (down from 57.5¢ in 2020)
- 16¢ per mile driven for medical or moving purposes (down from 17¢ in 2020)
- 14¢ per mile driven in service of charitable organizations (same rate as 2020)
The mileage rates above can be used to calculate how much employers should reimburse employees who use their own cars for business purposes. Taxpayers always have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates. For more information, please refer to the IRS press release.