December 30, 2020 10:58 pm

IRS Standard Mileage Rates for 2021

If you use a vehicle for certain driving purposes, you can deduct your costs based on your actual expenses or rely on an IRS-set mileage rate. The IRS has announced the standard mileage rates that can be used for certain types of deductible-driving (Notice 2021-02). These rates apply for the use of a car, van, pickup, or panel truck:

  • 56 cents per mile for business use, which is down from 57.5 cents per mile in 2020.
  • 16 cents per mile for medical or moving purposes (for certain members of the military), which is down one cent from 2020.
  • 14 cents per mile for charitable purposes. This rate is fixed by law and is not adjusted annually by the IRS.

If you use the standard mileage rate to figure your deduction for business use of a vehicle you own, you must reduce the basis of the vehicle by a cents-per-mile rate. For 2021, the rate is 26 cents per mile (down one cent from the 2020 rate).

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Tax Glossary

Qualifying widow or widower

A filing status entitling the taxpayer with dependents to use joint tax rates for up to two tax years after the death of a spouse.

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