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IRS Announces New Mileage Rates


Andrew Presti

The IRS has announced that the optional mileage allowance for owned or leased autos will increase by 1.5¢ to 57.5¢ per mile for business travel beginning Jan. 1, 2015. This rate can also be used by employers to provide tax-free reimbursements to employees who supply their own autos for business use, under an accountable plan, and to value personal use of certain low-cost employer-provided vehicles. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense will decrease by 0.5¢ to 23¢ per mile.  The mileage rate for driving an auto for charitable use  remains  14¢ per mile as it is not adjusted for inflation.

The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after Jan. 1, 2015, and to mileage allowances or reimbursements that are paid to an employee or charitable volunteer (1) on or after Jan. 1, 2015, and (2) for transportation expenses paid or incurred by the employee or charitable volunteer on or after Jan. 1, 2015.