​IRS 2024 mileage rates up a little for business, down a little for medical and military moving

It’s that time of year: Lights, presents, resolutions … and the IRS’s release of standard mileage rates.

Once again, there’s a slight bump for business use in 2024. Mileage for medical and moving purposes for qualified active-duty military members dropped a penny.

Here’s the official breakdown that starts Jan. 1, 2024:

• 67 cents per mile for business use, up 1.5 cents from 2023.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty military members, a drop of a cent from 2023.
• 14 cents per mile driven in service of charitable organizations, which is unchanged from 2023.

As always, the new rates are used to “calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.” The rates apply to cars, vans, pickups, and panel trucks. They also apply to electric and hybrid vehicles, as well as gasoline and diesel-powered ones.

Other tips:

• You can also always calculate your vehicle’s actual costs, rather than standard mileage rates.
• If you own your vehicle, for the first year your vehicle is available for business use, you have to use the standard rate. In subsequent years, you can then use the standard rate or actual expenses.
• If you lease your vehicle, you can choose between the standard or actual expense option. But if you opt to use the standard mileage rate, you can’t switch to the actual expense rate later.

The IRS also provided Notice 2024-08, which contains the optional 2024 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate plan.

If you have questions about mileage or any of the IRS’s other recent updates, let us know.