The 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes were issued last week. The Internal Revenue Service (IRS) announced that the standard mileage rate for business miles driven will be 51 cents per mile, up from 50 cents per mile in 2010.
Updated: For information on 2013 mileage rates, read New standard mileage rates announced for 2013.
Beginning on January 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven -- (50 cents in 2010)
- 19 cents per mile driven for medical or moving purposes -- (16.5 cents in 2010)
- 14 cents per mile driven in service of charitable organizations -- (14 cents in 2010)
While there was a 1 cent increase this year in cents per mile for business miles driven, the rate (51 cents) is still lower than the rate in 2009 (55 cents) and the second half of 2008 (58.5 cents.)
For information on mileage reimbursement business practices, read, BLR Survey: More Employers Paying IRS Maximum Mileage Allowance.
The standard mileage rate for business 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 as determined by the same study.
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 any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2010-51 contains additional details regarding the standard mileage rates.