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2016 Standard Mileage Rates for Business

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2016 Standard Mileage Rates for Business,
Medical, and Moving Announced
IR-2015-137, Dec.17, 2015
WASHINGTON — The Internal Revenue Service today issued the 2016 optional
standard mileage rates used to calculate the deductible costs of operating an
automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans,
pickups or panel trucks) will be:
 54 cents per mile for business miles driven, down from 57.5 cents for 2015
 19 cents per mile driven for medical or moving purposes, down from 23 cents
for 2015
 14 cents per mile driven in service of charitable organizations
The business mileage rate decreased 3.5 cents per mile and the medical, and moving
expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is
based on statute.
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.
Taxpayers always have the option of calculating the actual costs of using their vehicle
rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any
depreciation method under the Modified Accelerated Cost Recovery System (MACRS)
or after claiming a Section 179 deduction for that vehicle. In addition, the business
standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate
the amount of a deductible business, moving, medical or charitable expense are in Rev.
Proc. 2010-51. Notice 2016-01 contains the standard mileage rates, the amount a
taxpayer must use in calculating reductions to basis for depreciation taken under the
business standard mileage rate, and the maximum standard automobile cost that a
taxpayer may use in computing the allowance under a fixed and variable rate plan