How to Calculate Standard Mileage Rate

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IRS Standard Mileage Rate Calculator

2024 Rate: $0.67 / mile
2024 Rate: $0.21 / mile
2024 Rate: $0.14 / mile
For company-specific rates

Deduction Summary

Total Reimbursement:
function calculateMileageDeduction() { var bMiles = parseFloat(document.getElementById('businessMiles').value) || 0; var mMiles = parseFloat(document.getElementById('medicalMiles').value) || 0; var cMiles = parseFloat(document.getElementById('charityMiles').value) || 0; var customRateVal = parseFloat(document.getElementById('customRate').value) || 0; var bRate = 0.67; var mRate = 0.21; var chRate = 0.14; var bTotal = bMiles * bRate; var mTotal = mMiles * mRate; var chTotal = cMiles * chRate; var customTotal = 0; if(customRateVal > 0) { customTotal = bMiles * customRateVal; } var grandTotal = bTotal + mTotal + chTotal; var breakdownHTML = '
    '; if (bMiles > 0) breakdownHTML += '
  • Business: ' + bMiles + ' miles x $0.67 = $' + bTotal.toFixed(2) + '
    • '; if (mMiles > 0) breakdownHTML += '
  • Medical/Moving: ' + mMiles + ' miles x $0.21 = $' + mTotal.toFixed(2) + '
    • '; if (cMiles > 0) breakdownHTML += '
  • Charity: ' + cMiles + ' miles x $0.14 = $' + chTotal.toFixed(2) + '
    • '; if (customRateVal > 0) breakdownHTML += '
  • At Custom Rate: ' + bMiles + ' miles x $' + customRateVal.toFixed(2) + ' = $' + customTotal.toFixed(2) + '
    • '; breakdownHTML += '
'; document.getElementById('breakdownOutput').innerHTML = breakdownHTML; document.getElementById('totalDisplay').innerText = '$' + grandTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mileageResult').style.display = 'block'; }

How to Calculate Standard Mileage Rate for 2024

Calculating your standard mileage rate is a critical task for small business owners, freelancers, and independent contractors looking to minimize their tax burden. The IRS sets these rates annually based on the cost of operating a vehicle, including fuel, repairs, and insurance.

Current IRS Rates for 2024

  • Business: 67 cents per mile (Used for business-related travel).
  • Medical and Moving: 21 cents per mile (Available for qualified medical expenses or active-duty military moves).
  • Charitable: 14 cents per mile (Set by statute for services provided to charitable organizations).

The Calculation Formula

The math behind the mileage deduction is straightforward. To calculate your total deduction, use the following formula:

Total Miles × Standard Rate = Total Deduction Amount

Example Calculation

Suppose you are a freelance consultant who drove 2,500 business miles in 2024 and 300 miles to volunteer for a local non-profit. Your calculation would look like this:

  1. Business: 2,500 miles × $0.67 = $1,675.00
  2. Charitable: 300 miles × $0.14 = $42.00
  3. Total Tax Deduction: $1,717.00

Standard vs. Actual Expenses

It is important to note that you have two choices for deducting vehicle expenses. You can use the Standard Mileage Rate (as shown above) or Actual Expenses. Actual expenses involve tracking every dollar spent on gas, oil changes, tires, insurance, and vehicle depreciation. Most taxpayers choose the standard rate because it requires significantly less record-keeping while still providing a substantial deduction.

Critical Record-Keeping Requirements

To claim this deduction, the IRS requires you to keep a contemporary log. You must document:

  • The date of each trip.
  • The total mileage driven.
  • The destination or purpose of the trip.
  • The odometer reading (at the start and end of the year).

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