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IRS Standard Mileage Rates For 2015 Announced

Tax

By Jessica Murtha

The Internal Revenue Service (“IRS”) has issued Notice 2014-79, which provides the optional 2015 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.  The business rate is set to rise in 2015.

2015 Standard Mileage Rates

The IRS standard mileage rates for the use of an automobile effective on or after January 1, 2015 will be:

  • 57.5 cents per mile for business miles driven
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business rate increased 1.5 cents due to the annual study of the fixed and variable costs of operating a vehicle.  The medical or moving rate decreased half of a cent, since the annual study is based on variable costs (i.e., gas and oil).  The charitable rate is set by law and remains the same as last year’s rate.

As always, the option of claiming deductions based on the actual costs of using a vehicle rather than the rates listed above is available to taxpayers.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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