Effective January 1, 2024, the standard mileage rate for business vehicle use has increased to 67 cents per mile, up from the 2023 rate of 65.5 cents per mile. This adjustment is in response to fluctuations in gasoline costs.
Taxpayers have the option to choose between utilizing the standard mileage rate for deductions or calculating their actual vehicle expenses. It is imperative to maintain detailed records, particularly for vehicles used for both business and personal purposes. Regardless of the chosen method, the accurate documentation of personal and business miles is crucial for ensuring precise deductions.
For qualified active-duty military members relocating for medical reasons, the mileage rate has been adjusted to 21 cents per mile, a slight decrease from the 2023 rate of 22 cents.
Charitable organizations will continue to apply the statutory rate of 14 cents per mile for 2024, with no changes unless the governing statute is modified.
These rates are applicable to electric, hybrid-electric, gasoline, and diesel-powered vehicles. In 2024, the portion of the standard mileage rate allocated for depreciation in basis reduction calculations is set at 30 cents per mile.
Taxpayers have the flexibility to compute the precise costs associated with their vehicle use, providing an alternative to relying on the standard mileage rates.