Business Standard Mileage Rate Increases for 2024

The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 67 cents per mile driven, up 1.5 cents from 2023. The increased rate is effective as of Jan. 1, 2024 (Notice 2024-08).

The notice, released Thursday, sets the 2024 standard mileage rates at 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the armed forces, 1 cent less than the previous year.

The rate per mile driven in service of charitable organizations is 14 cents, which is set by statute and unchanged from 2022. 

The rates apply to electric and hybrid-electric automobiles, as well as gasoline- and diesel-powered vehicles. 

The portion of the business standard mileage rate that is treated as depreciation for purposes of calculating reductions to basis will be 30 cents per mile for 2024.

Taxpayers can calculate the actual costs of using their vehicle rather than using the standard mileage rates.