IRS Releases Updated Standard Mileage Rates

IRS Releases Updated Standard Mileage Rates


irsYou’ve been waiting all year, and now the updates are finally here. The Internal Revenue Service recently announced the 2015 optional standard mileage rates. These rates are used to figure the deductible costs of using a vehicle for business, charity, medical, or moving purposes.

The IRS says that starting January 1, the standard mileage rates for a car, van, pickup or panel truck are:

57.5 cents per mile for business miles driven, up from 56 cents in 2014.

23 cents per mile driven for medical or moving purposes, down half a cent from 2014.

14 cents per mile driven in service of charitable organizations.

The IRS says the rates for business is based on a study done each year on the fixed and variable costs of operating a vehicle. This includes insurance, maintenance, and depreciation. Rates for medical and moving purposes are based on costs such as gas and oil, and are set by law.

As a taxpayer you have the option of claiming your deduction based on the cost of using a vehicle instead of the standard mileage rates.