IRS Releases Mileage Rates for 2024

At A Glance

The IRS has provided the standard mileage rates effective January 1, 2024.

Purpose	Rates 7/1 to 12/31/23	Rates 1/1/2024
Business	$0.655 cents per mile	$0.67 cents per mile
Medical/Moving	$0.22 cents per mile	$0.21 cents per mile
Charitable	$0.14 cents per mile	$0.14 cents per mile

 

Mileage Rates Increased for 2024

For 2024, the standard mileage rate for business travel will be 67 cents per mile, an increase of 1.5  cents from the rate effective at the start of the year. The rate for deductible medical or moving expenses (available for active-duty members of the military) will decrease by 1 cent to 21 cents. These new rates become effective January 1, 2024. The IRS provided legal guidance on the new rates in Notice 2024-08.

The revised standard mileage rates apply to:

• Deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after January 1, 2024
• Mileage allowances that are paid both to an employee on or after January 1, 2024
• Transportation expenses paid or incurred by the employee on or after January 1, 2024.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.

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A Primer on Employee Mileage Reimbursement

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