Federal Deductible Mileage Rate Schedule by Tax Year  

Current Tax Year 2009 Mileage Rates:  January 1, 2009 - December 31, 2009

The standard mileage rates for the use of a car, van, pickup, or panel truck:

55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The business standard mileage rate may not be used for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

Furthermore, business standard mileage rates cannot be used for vehicles used for hire or for more than four vehicles used simultaneously.

The option of calculating the actual cost of using your vehicle rather than using the standard mileage rates remains.

For more information, see Publication 463, Travel, Entertainment, Gift, and Car Expenses.

Next Year 2010 Mileage Rates: January 1, 2010 - December 31, 2010

Mileage rates for 2010 have been released by the IRS. The new mileage rates for business, medical, and moving expenses are lower than last year's rates to reflect generally lower transportation costs.

The standard mileage rates for the use of a car, van, pickup or panel truck:

50 cents per mile for business miles driven 
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The standard mileage rates may not be used for hired vehicles or for more than four vehicles used simultaneously. If you are claiming deductions for vehicle depreciation, then the standard mileage rate must be reduced by the depreciation component (23 cents per mile).

You may also deduct the cost of parking and tolls while using your vehicle for one of the above purposes if you have not claimed vehicle depreciation.

Tax Planning Tip: Keep records of your deductible mileage each month with a simple journal or mileage log. For your convenience eFile has prepared a downloadable Mileage Log which you can print out and fill in each month.

Download the eFile Mileage Log here.

Previous Year Mileage Rates: July 1, 2008 - December 31, 2008

Mileage Rate increases to 58.5 cents per mile.

The increased gas prices have a major impact on individuals who use their automobile for business use. The new standard business mileage reimbursement rate for July 1, 2008 - Dec. 31, 2008 is 58.5 cents. This rate is used as an option to compute deductible business related automobile costs. (If you are using your automobile for private and business use). The alternative method is tracking actual automobile costs.

The mileage rate for automobile use for computing medical or moving automobile expenses for July 1, 2008 - Dec. 31, 2008 will increase to 27 cents/mile.

The automobile use for charitable organizations is 14 cents/mile.

Remember that mileage rates are not the extent of your deductible expenses for the business use of your car. Remember to include parking and tolls under deductible expenses for the business use of you car.

Previous Mileage Rates: January 1, 2008 - June 30, 2008

The 2008 optional standard mileage reimbursement rate used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes will be as of Jan. 1, 2008 for the use of a car (including vans, pickups or panel trucks): 50.5 cents per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by law.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

For more information, see Publication 463, Travel, Entertainment, Gift, and Car Expenses.