What is the standard mileage for business?
Jessica Young
Published Jan 08, 2026
Using these same figures to calculate the Standard Mileage deduction, the driver multiplies the business mileage (5,000 miles) by the standard mileage rate (57.5 cents per mile in 2020), for a Standard Mileage deduction of $2,875.
What is the standard for mileage?
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| Period | Rates in cents per mile | Source |
|---|---|---|
| Business | ||
| 2020 | 57.5 | IR-2019-215 |
| 2019 | 58 | IR-2018-251 |
| 2018 TCJA | 54.5 | IR-2017-204 IR-2018-127 |
Who can use the standard mileage rate?
To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.
What is the 2020 business mileage rate?
57.5 cents per mile
The new mileage rates are down from 57.5 cents per mile for business purposes and 17 cents per mile for medical or moving purposes in 2020.
What is a fair mileage rate?
56 cents per mile driven for business use, down 1.5 cents from the rate for 2020, 16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and.
Does IRS require mileage?
The IRS requires “contemporaneous” record-keeping for mileage. That means a recording at or near the time of the trip. You can record the mileage at the time of the trip and enter the business purpose at the end of the week.
What is the standard mileage rate for a business?
For the 2020 tax year, the standard mileage rate for business use is set at 57.5 cents per mile. For tax year 2021, the business use rate is 56 cents per mile. 1 Understanding the Standard Mileage Rate The taxpayer has the option of calculating the amount of the deduction using the standard mileage rate or based on actual expenses.
Can a company director claim a standard mileage rate?
Company directors are categorised as officers of the company even when they own, or part own the company. This means that the same tax legislation and conditions apply to them in relation to mileage and subsistence rates as standard employees. However, the vehicle for which the mileage rates are being claimed must be in the directors name.
How does a company pay for employee mileage?
Some companies will even offer various ways to “pay for” employee mileage. Options can include providing work cars or offering a gas allowance. This can also include reimbursement for company mileage. As mentioned above, many companies peg the reimbursement rate to the rate set by the IRS.
What is the employee mileage reimbursement rate for 2019?
Employee Mileage Reimbursement. For 2019, the Standard Mileage Rate is rate is set at 58 cents per mile traveled, up from 54.5 cents for 2018. This fixed, standard rate incorporates the cost of insurance, registration, gas, oil, and maintenance. For someone who drives a lot for work, this can result in a significant deduction.
