2024 Federal Mileage Rate: IRS Standard Rates & Reimbursement

If you use your car for work, you already know that every mile adds up — in fuel, wear, and time. The IRS has set the 2024 federal mileage rate at 67 cents per business mile, up 1.5 cents from 2023, according to IRS Notice 2024-08. This guide walks through how that rate works, how to calculate your reimbursement, and what it means for your taxes, whether you’re self-employed, an employee, or a business owner reimbursing your team.

2024 business rate: 67 cents per mile ·
Medical/moving rate: 21 cents per mile ·
Charity rate: 14 cents per mile ·
Increase from 2023: +1.5 cents ·
Effective date: January 1, 2024

Six key facts, one pattern: every rate increased except charity, which holds steady by statute.

The 2024 rates are the highest on record for business miles, reflecting rising vehicle costs and inflation. Here’s how the numbers break down.

What is the new mileage reimbursement rate?

Business mileage rate

• The 2024 business standard mileage rate is 67 cents per mile, effective January 1, 2024 (IRS Notice 2024-08).
• This rate applies to self-employed individuals, employees using personal cars for business, and employers reimbursing workers under an accountable plan.
• It includes the cost of fuel, maintenance, depreciation, insurance, and registration (SHRM, HR industry association).

Medical and moving rate

• The 2024 medical or moving mileage rate is 21 cents per mile for qualified active-duty members of the Armed Forces (IRS Notice 2024-08).
• This rate covers only variable costs (fuel, oil, repairs) because maintenance and depreciation are already factored differently for these trips.

Charity rate

• The charitable mileage rate remains 14 cents per mile, unchanged from 2023 (SHRM, HR industry association).
• Charity drivers cannot use the actual expenses method — they must take the standard 14¢/mile rate.

The implication: the 1.5-cent business-rate bump reflects higher fixed costs like depreciation, while the charity rate is locked by Congress, not inflation.

How do I calculate mileage for reimbursement?

Multiply miles driven by applicable rate

• The formula: total business miles × IRS rate = reimbursement amount. For example, 1,000 business miles × $0.67 = $670.
• Use the rate that matches your trip purpose: business, medical, moving, or charity.
• If your employer reimburses at a rate above 67¢/mile, the excess is taxable (Motus, fleet reimbursement specialist).

Record keeping requirements

• Keep a log with date, destination, business purpose, and odometer start/end readings (IRS Publication 463).
• Digital apps or spreadsheets work; the key is contemporaneous records, not reconstructed at year-end.
• For the standard mileage deduction, you must elect the method in the first year the car is available for business (IRS Publication 463).

Actual expenses vs standard mileage

• Standard mileage includes fuel, oil, repairs, tires, insurance, depreciation, and registration — everything bundled.
• Actual expenses let you deduct real costs (gas, repairs, lease payments, etc.) but require itemized receipts and allocation between business and personal use.
• You cannot use both methods for the same vehicle in the same year (SHRM, HR industry association).

The trade-off: standard mileage is simpler; actual expenses can be larger if your vehicle is expensive to run. Choose wisely in year one, because switching later is restricted.

How much can I claim for mileage in 2024?

Self-employed individuals

• Deduct business mileage on Schedule C (Profit or Loss from Business). No limit on the number of miles, but you must have a valid business purpose.
• Commuting miles (home to regular workplace) are not deductible.

Employees

• After the Tax Cuts and Jobs Act (2018–2025), unreimbursed employee business expenses are no longer deductible on Schedule A.
• If your employer reimburses you under an accountable plan, the reimbursement is tax-free; otherwise the miles are worth nothing on your return.

Medical and charitable drivers

• Medical mileage is deductible on Schedule A if total medical expenses exceed 7.5% of adjusted gross income.
• Charitable mileage is deductible as a charitable contribution — no AGI threshold applies, but it’s a non-itemizing deduction only available to those who itemize.
• Moving mileage is only deductible for active-duty military members (IRS Notice 2024-08).

The pattern: the same mileage rate applies to different deduction categories, each with its own eligibility gate. Self-employed drivers benefit most because miles are a direct business expense.

Can I deduct both mileage and gas?

Standard mileage rate method

• No — you cannot deduct both mileage and actual gas costs. The standard mileage rate already includes fuel (IRS Publication 463).
• If you choose standard mileage, you forgo deducting separate gas receipts, oil changes, and tire replacements for that vehicle.

Actual expenses method

• With actual expenses, you track every dollar spent on gas, repairs, insurance, and depreciation, then deduct the business-use percentage.
• You may switch between methods only in certain years — after choosing standard mileage in year one, you can switch to actual later, but not back again easily.

The catch: double-dipping (mileage rate plus gas) is prohibited and triggers an audit flag. Pick one method per vehicle per year.

What is the federal mileage rate for 2024?

2024 rate and historical context

• The 2024 business rate of 67¢/mile is the highest on record, surpassing the 65.5¢ rate from 2023.
• Medical/moving rate rose to 21¢ from 20.5¢; charity stayed at 14¢.

Changes from 2023

• Business rate increased 1.5¢ (2.3%) from 65.5¢ to 67¢ (SHRM, HR industry association).
• Medical/moving rate increased 0.5¢ (2.5%).
• Charity rate unchanged since statutory cap.

Outlook for 2025 and 2026

• The IRS announced a 2025 business rate of 70¢/mile in December 2024 (IRS Publication 463).
• A proposed 2026 rate of 72.5¢/mile was released in December 2025.

Why this matters: rates have risen 9.5¢ in just four years (2021–2025), reflecting higher vehicle costs and inflation. Mid-year adjustments — like the July 2022 increase from 58.5¢ to 62.5¢ — remain a possibility if fuel prices surge.

Timeline of IRS mileage rates (2020–2026)

The table below shows how business, medical, and charity rates have moved over the last six years.

The pattern: steep increases since 2022, a gap between business and medical rates that widens, and a frozen charity rate — forcing drivers to lean on standard mileage for business use.

Expert perspectives

“The 2024 standard mileage rates reflect the annual study of the costs of operating an automobile.”

— IRS official release, Notice 2024-08, December 14, 2023

“The 1.5-cent increase for business miles is moderate compared to the mid-year adjustment we saw in 2022, but it continues the upward trend driven by higher vehicle costs.”

— EY Tax News Update analysis, December 2023 (EY, global tax advisory firm)

The IRS bases the business rate on an annual study of fixed and variable costs (Cornell University Finance). The medical rate uses only variable costs, which explains the lower figure.

For self-employed workers and small business owners, the choice is clear: track every mile, use the standard mileage rate to maximize your 2024 deduction at 67¢ per business mile, and prepare for the 2025 rise to 70¢ — or risk leaving hundreds of dollars on the table at tax time.

Frequently asked questions

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