Each year, the Internal Revenue Service determines standard mileage rates, the amount per mile which taxpayers can claim as an expense if they itemize their returns. Many employers use the standard business mileage rate to determine how much they reimburse their employees for work-related travel. The IRS also sets standard mileage rates for travel related to medical care, moving and charitable causes.
Standard Business Rate
For 2014, the standard mileage rate for business travel is 56 cents per mile. Taxpayers who are reimbursed by their employers at a lower rate can claim the difference on their tax returns. This rate is based on a yearly evaluation of fixed and variable automobile operating costs.
Standard Medical and Moving Rate
The rate for medical and moving expenses is based only on the variable costs of operating an automobile. For 2014, that rate is 23.5 cents per mile. Miles related to moving are eligible only if the move itself is deductible.
Standard Charitable Mileage Rate
Miles driven while volunteering for a qualified charitable organization are also deductible. They must be unreimbursed and out-of-pocket expenses. The standard rate for 2014 is 14 cents per mile.