The Internal Revenue Service (IRS) has issued the 2024 optional standard mileage rates effective Jan. 1, 2024. The standard mileage rates for electric, hybrid-electric or diesel-powered cars, vans, pickups or panel trucks will be: 

  • 67 cents per business mile – this is an increase of 1.5 cents from 2023 and will affect the amount of money self-employed individuals and businesses can deduct for qualified business-related travel expenses. 
  • 21 cents per medical or moving mile for qualified active-duty members of the Armed Forces – this is a decrease of 1 cent from 2023. Please note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, nor can they claim a deduction for moving expenses unless they are members of the Armed Forces on active duty moving under orders.  
  • 14 cents per charitable mile – this rate remains unchanged from 2023 and is meant to help individuals and organizations cover the costs of providing volunteer services and donations to those in need. 

Taxpayers have the option of calculating the actual costs of using their vehicle rather than the standard mileage rate but must opt to use it in the first year the vehicle is available for business use. In later years, they can choose between the standard mileage rate or actual expenses.  

If the taxpayer chooses the standard mileage rate at the beginning of a vehicle lease, it applies consistently throughout the entire lease duration, even during renewed years. 

Regardless of which method the taxpayer chooses, they should maintain detailed records of miles driven throughout the year. Keeping accurate mileage logs will help maximize tax savings by ensuring accurate deductions are reported.  

Notice 2024-08 contains the optional 2024 standard mileage rates and the maximum automobile cost used to calculate the allowance under a fixed and variable rate plan. Additionally, it outlines the highest fair market value for employer-provided automobiles initially accessible to employees for personal use in the calendar year 2024. Employers have the option to apply either the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. 

Contact an Adams Brown advisor with any questions about mileage rates.