IRS Releases 2016 Mileage Rates

The Internal Revenue Service (IRS) has issued the 2016 optional standard mileage rates. Standard mileage rates are:

• 54 cents per mile for business miles driven (down from 57.5 cents in 2015)
• 19 cents per mile driven for medical or moving purposes (down from 23 cents in 2015)
• 14 cents per mile driven in service of charitable organizations (fixed by Congress, never adjusted for inflation)

The dips in mileage rates for 2016 reflect lower gas prices nationwide. According to AAA, U.S. drivers are paying the lowest average price for regular unleaded gasoline since 2009. On average, taxpayers are paying 79 cents per gallon less than they did in 2015.

The standard mileage rate for business is calculated using an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. S