IRS raises standard mileage rate for businesses

  • January 8, 2015
  • Mark Hughes CPA CFE

driverThe Internal Revenue Service recently issued  Notice 2014-79 which outlines the 2015 optional standard mileage rates that are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be 57.5 cents per mile for business miles driven, up from 56 cents in 2014. The rate will be 23 cents per mile driven for medical or moving purposes, down half a cent from 2014, and 14 cents per mile driven in service of charitable organizations.

The IRS noted that the standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil.

For complete details from the IRS website, click here.