The Internal Revenue Service (IRS) raised the standard mileage rates used to calculate tax deductions for vehicles used by businesses, bumping it up 1.5 cents per mile starting next year.
Businesses and charities can deduct the cost of operating a vehicle they use for official purposes in their tax returns. One way of calculating operating costs is the “Standard Mileage Rate,” which involves multiplying the number of business miles traveled by a vehicle by the mileage rate set by the IRS. On Dec. 14, the tax agency announced an increase in the standard mileage rate for business use of cars, vans, pickups, and panel trucks beginning Jan. 1, 2024. The mileage rate has been bumped to 67 cents per mile driven for business use, up 1.5 cents from this year. The rate is 11 cents or 19.64 percent higher compared to 2021.
