IRS Lowers Standard Mileage Rate for 2021

The business mileage rate will be $0.56 cents per mile  

For 2021, standard mileage rates for the use of cars, vans, pickups, or panel trucks will be:  

  • $0.56 cents per mile driven for business use, down from $0.575 cents in 2020. 
  • $0.16 cents per mile driven for medical or moving purposes, down from $0.17 cents in 2020. 
  • $0.14 cents per mile driven in service of charitable organizations, which remains unchanged. 

While the standard mileage rates for business, medical, and moving purposes are based on annual changes in the costs of operating an automobile, the charitable rate is set by statute. Taxpayers always have the option of calculating the actual costs of using their vehicle, rather than using the standard mileage rates, by providing adequate records according to a statement by the IRS. Notice 2021-02 from the IRS also states that for cars an employee uses for business, the portion of the standard mileage rate treated as depreciation will be $0.26 cents per mile for 2021, down from $0.27 cents per mile in 2020.