The Internal Revenue Service has issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven (down from 57.5 cents);
- 19 cents per mile driven for medical or moving purposes (down from 23 cents); and
- 14 cents per mile driven in service of charitable organizations (no change, again).
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. For more information, see our article on charitable deductions for volunteers and IRS Revenue Procedure 2010-51. The volunteer mileage rate of 14 cents has not changed in many years.
Use CharityCheck101.org to see if your favorite nonprofit is qualified to provide you a charitable deduction for the miles you drive.