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 , 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.Travel and Subsistence Expenses; Mileage Allowances, 5 U.S.C. 5704(a)(1), Available from: US Code Main Page , 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."
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 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/mileIRS Notice 2018-03. TBA 2019 58 cents/mileIRS Notice 2019-02. 202057.5 cents/mileIRS Notice 2020-05$1.27/mile54.5 cents/mile202156 cents/mileIRS Notice 2021-02Jan–June 202258.5 cents/mileJuly–Dec 202262.5 cents/mile202365.5 cents/mile202467 cents/mile202570 cents/mileJan–June 202672.5 cents/mileJuly–Dec 202676 cents/mile
References 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.
Revenue Procedure 2008–72, I.R.B. 2008–50, November 24, 2008, Internal Revenue Service, U.S. Dep't of the Treasury.
IRS increases mileage rate for remainder of 2022 IRS Mileage Rate 2024 IRS Mileage Rate 2025 IRS Mileage Rate 2026