The IRS has issued the 2016 optional standard mileage rates for calculating the deductible costs of operating an automobile. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Effective Jan 1st the standard rates for a car, van, pickup truck or panel truck will be:

  • $0.54/mile when driven for business purposes
  • $0.19/mile when driven for medical or moving purposes
  • $0.14/mile when driven in service of a charitable organization

The business mileage rate decreased $0.035/mile from 2015. The medical and moving expense rates decreased $0.04/mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. The charitable rate is based on statute and, therefore, unchanged.

Additional information may be found here and here.