Taxes how much per mile

What Is the Standard Mileage Rate? Key Takeaways There are three standard mileage rates used to calculate the deduction, one each for use of a personal vehicle on business, for a charitable purpose, and for a medical purpose. The deduction for personal vehicle use as a moving expense has been eliminated except for active-duty military personnel.

The rates are revised by the IRS each year. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

Investopedia does not include all offers available in the marketplace. Reading Into Transportation Expenses Transportation expenses are costs incurred by an employee or self-employed taxpayer while away from home in a travel status for business.

Mileage Allowance A mileage allowance is the rate at which the IRS suggests tax payers deduct miles driven as an expense for approved purposes. Reimbursement Plan A generic term for several types of plans that reimburse employees for work-related expenses, such as medical, auto, travel, meal, and entertainment costs.

Partner Links. Related Articles. Investopedia is part of the Dotdash publishing family. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. Science Technology Business U.

Mileage tax study, not actual mileage tax, proposed in infrastructure bill. Connect with the definitive source for global and local news. The Associated Press.

All rights reserved. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. In , the standard IRS mileage rate is 56 cents per mile for business miles driven, 14 cents per mile for charity miles driven and 16 cents per mile for moving or medical purposes. In , the IRS standard mileage rate was higher You must meet certain requirements and itemize your taxes to deduct mileage.

If you qualify to deduct mileage, the IRS mileage rate is a way to calculate how much to reduce your taxable income. Your tax deduction depends on how you use your vehicle. Commuting to work is generally not deductible mileage.

There are two options for calculating the deduction for the business use of your vehicle. This is the most straightforward way of calculating your driving expense: simply multiply the number of business miles by the IRS mileage rate. The rules for business mileage deductions can be complex, especially if you use lots of vehicles for business, just got a new vehicle or leased the vehicle.

The IRS website has more details. These expenses may include:. Learn about coronavirus relief options for small businesses and the self-employed. Compare online loan options for funding and eventually growing your small business. If you used your car to help a charity or to go somewhere to volunteer, the mileage can be deductible. You can deduct parking fees and tolls as well.

However, the expenses have to relate directly to the use of your car in giving services to a charitable organization. Also, you can't deduct repair and maintenance costs, depreciation, registration fees, tires or insurance. Only active duty members of the military can deduct mileage related to moving.