2020 Standard Mileage Rate is 57.5¢ per mile
The IRS has issued the new standard mileage rate that took effect on January 1, 2020. The new rate is 57.5¢ per mile for the use of a car, van, pickup, or panel truck. This is down a half cent from 2019.
Additional notes on the new standard mileage rate include the following:
• 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
• 14 cents per mile driven in service of charitable organizations.
The IRS states that the standard mileage rate for business use 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.
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 five vehicles used simultaneously. These and other limitations are described in section 4.05 of Rev. Proc. 2019-46.
If you are interested in learning more about the new standard mileage rate and other business related items regarding vehicle use for work, please visit the Notice 2020-05, posted on IRS.gov.
IRS Tax Tip: 2019-215
