2021 Mileage Rates

What are the Standard Mileage Rates for 2021?

I know many people, including me, will continue working from home next year. The thought of traveling around town used to bring me dread because of all the traffic and parking issues. However, after being home so long, I wouldn’t mind a little driving around town to see clients and meet with them face-to-face.

One good thing about driving for work is getting reimbursed. You can also use the mileage rates for a few other categories. The IRS sets the rates that you can use for reimbursement annually, taking into account current economic conditions like the cost of fuel. Here are the rates for 2021 according to their newly released guidance on December 22, 2020.

Type of vehicle useRateChange from prior year
Business miles$0.56Down 1.5 cents from the 2020 rate
Medical & moving(for military) miles$0.16Down 1 cent from the 2020 rate
Charitable miles$0.14Rate is set by statute and remains unchanged

You can see the full IRS notice here.

You can also read the Journal of Accountancy article here.