Historical mileage rates year by year from 2018 to 2024
Standard mileage rates are used by businesses and self-employed to calculate tax-free reimbursements and tax deductions. They ensure fair compensation for using personal vehicles for work-related purposes.
Each year, the Internal Revenue Service publishes updated rates to reflect ongoing changes in gas prices, inflation, and various car maintenance costs. The rates apply to most gasoline-powered vehicles and, since 2023, also to electric and hybrid cars.
The IRS posts annual rates in the middle of December. However, there have been situations where the IRS has issued updates throughout the year to address sudden changes in the economic situation. In the last 20 years, we’ve seen it happen in 2008, 2011, and 2022.
The IRS mileage rates in 2018
The standard mileage rates set by the IRS for 2018 were:
- 54.5 cents per mile for business purposes (up 1 cent from 2017).
- 18 cents per mile for medical and moving purposes (up 1 cent from 2017).
- 14 cents per mile for charitable purposes.
The minimal change in mileage rates from 2017 to 2018 can be attributed to relatively stable economic conditions. Typically, the rates are influenced by fuel prices, vehicle depreciation, maintenance costs, and overall economic trends. A one-cent increase in mileage rates shows that there hasn’t been much change in those areas.
Despite the stability, there has been one significant change regarding who can get mileage-based tax deductions. In 2018, the IRS suspended moving-related travel tax deductions from December 31, 2017, to January 1, 2026. According to The Tax Cuts and Jobs Act, the only group still allowed to get tax-free reimbursement during that time would be members of the Armed Forces moving due to military order.
The IRS mileage rates in 2019
The standard mileage rates set by the IRS for 2019 were significantly increased from the previous year:
- 58 cents per mile for business purposes (up 3.5 cents from 2018).
- 20 cents per mile for medical and moving purposes (up 2 cents from 2018).
- 14 cents per mile for charitable purposes.
The Internal Revenue Service issued the changes after an annual study of all the changing costs of operating an automobile. However, it doesn’t take a study to see the biggest reason for that change: the price of gasoline.
From 2016 to 2018, gas prices increased from $2.14 per gallon in 2016 to $2,72 in 2018. That’s clearly one of the biggest reasons the IRS had to correct the mileage rate to ensure that employees and the self-employed receive fair tax deductions and reimbursements.
The IRS mileage rates in 2020
Moving on to 2020, the IRS established the following mileage rates:
- 57.5 cents per mile for business purposes (down 0.5 cents from 2019).
- 17 cents per mile for medical and moving purposes (down 3 cents from 2019).
- 14 cents per mile for charitable purposes.
Just a 0.5-cent drop in the business mileage rate was quite a small change, which could be attributed to slightly lower gas prices in the previous year and overall economic stability.
However, there was a notable change regarding procedures. The IRS clarified that starting in 2020, businesses won’t be able to use standard mileage rates for a vehicle in two specific instances:
- After choosing the depreciation method under the Modified Accelerated Cost Recovery System (MACRS)
- After claiming Section 179 deduction for that vehicle.
The IRS mileage rates in 2021
2021 was yet another year in which mileage rates remained relatively unchanged.
- 56 cents per mile for business purposes (down 1.5 cents from 2020).
- 16 cents per mile for medical and moving purposes (down 1 cent from 2020).
- 14 cents per mile for charitable purposes.
Economic stability and decreased gas prices were the key factors that resulted in this fairly small drop in standard mileage rates.
The IRS mileage rates in 2022
Due to the economic situation caused by the Covid-19 pandemic, mileage rates in 2022 were changed twice.
Standard mileage rates set for the first half of 2022 were slightly higher than the previous year.
- 58.5 cents per mile for business purposes (up 2.5 cents from 2021).
- 18 cents per mile for medical and moving purposes (up 2 cents from 2021).
- 14 cents per mile for charitable purposes.
Then, after the rapid growth of gas prices, economic uncertainty, and the looming crisis caused by the pandemic, the IRS updated mileage rates from July until the end of the year.
- 62.5 cents per mile for business purposes (up 4 cents from the initial rate, up 6.5 from 2021)
- 22 cents per mile for medical and moving purposes (4 cents more than the initial rate, up 6 cents from 2021).
- 14 cents per mile for charitable purposes
The Internal Revenue Service usually doesn’t explain the exact process behind setting annual mileage rates, but this unusual change was the exception. The IRS Commissioner, Chuck Rettig, explained in his statement that the update directly results from the rapid increase in fuel prices caused by the global pandemic.
The change was surely appreciated by employees and self-employed drivers expecting fair reimbursements and tax deductions after those dynamic market fluctuations.
It’s also worth noting that in addition to business rates, medical rates have grown to the highest level since 2015.
The IRS mileage rates in 2023
Even after such a significant increase in the previous year, standard mileage rates continued to grow in 2023.
- 65.5 cents per mile for business purposes (up 3 cents from the 07/2022 update, up 6.5 from the initial rate in 2022).
- 22 cents per mile for medical and moving purposes (same rate as in the 07/2022 update).
- 14 cents per mile for charitable purposes.
The post-pandemic crisis was certainly the most significant reason for that change. In the middle of 2022, retail gas prices in the USA grew over $5 per gallon for the first time in history. Even though the prices dropped significantly below $4 and stabilized by the end of the year, we can surely attribute the change to instability.
When does the IRS set mileage rates?
The IRS publishes annual mileage rates in the middle of December after a thorough analysis of fixed and variable automobile operating costs. This ensures that the rates are up-to-date and reflect the current economic conditions.
The key factors in play are:
- Inflation and cost of living
- Gas prices
- Vehicle maintenance costs
- Insurance rates
- Vehicle depreciation
In addition to that, the IRS can take into consideration certain policy and tax updates.
Current mileage rate (2024)
The IRS standard mileage rates for 2024 stand at:
- 67 cents per mile for business purposes (up 1.5 cents from 2023).
- 21 cents per mile for medical and moving purposes (down 1 cent from 2023).
- 14 cents per mile for charitable purposes.
How to calculate your mileage reimbursement?
The formula for mileage reimbursement is quite simple. You need to know two things:
- Mileage rate. Employers can use the standard mileage rate to reimburse their employees (67 cents per mile in 2024), but it’s not mandatory. Make sure to check with your employer what the actual rate is.
- Business miles driven. You must record each business-related drive using a manual log or an app like MileIQ.
When you have all the data, you can start calculating using this formula:
Mileage rate * Business Miles Driven = Reimbursement amount
For example, if you’ve driven 500 business miles, your employer uses standard mileage for reimbursements, and the year is 2024, the equation would look like this:
0.67 * 500 = $335
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