Mileage Rate Calculator 2021

2021 Mileage Rate Calculator

Business (56 cents / mile) Medical or Moving (16 cents / mile) Charitable (14 cents / mile)

Estimated Tax Deduction:

$0.00

function calculateMileageDeduction() { var miles = document.getElementById("milesDriven").value; var rate = document.getElementById("mileageType").value; var resultDiv = document.getElementById("mileageResult"); var displayAmount = document.getElementById("deductionAmount"); var displayDescription = document.getElementById("rateDescription"); if (miles === "" || parseFloat(miles) <= 0) { alert("Please enter a valid number of miles."); return; } var totalDeduction = parseFloat(miles) * parseFloat(rate); var rateName = ""; if (rate === "0.56") rateName = "Business rate (56¢)"; else if (rate === "0.16") rateName = "Medical/Moving rate (16¢)"; else if (rate === "0.14") rateName = "Charitable rate (14¢)"; displayAmount.innerHTML = "$" + totalDeduction.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); displayDescription.innerHTML = "Based on " + miles + " miles at the 2021 " + rateName + " per mile."; resultDiv.style.display = "block"; }

For taxpayers, freelancers, and business owners, tracking vehicle expenses is a critical part of tax preparation. For the 2021 tax year, the Internal Revenue Service (IRS) set specific standard mileage rates that differ from previous and subsequent years. Using our 2021 mileage rate calculator allows you to quickly determine the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Official 2021 Mileage Rates

The IRS adjusted the rates for 2021 slightly downward compared to 2020 to reflect changes in the cost of fuel and vehicle maintenance. The standard mileage rates for the use of a car (also vans, pickups, or panel trucks) were:

• Business: 56 cents per mile driven for business use.
• Medical or Moving: 16 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces.
• Charitable: 14 cents per mile driven in service of charitable organizations.

How to Calculate Your 2021 Deduction

Calculating your mileage deduction is a straightforward process of multiplication, but you must ensure your records are accurate. The formula is:

[Miles Driven] x [IRS Standard Rate] = Total Deduction

For example, if you drove 1,200 miles for business purposes in 2021, your calculation would be 1,200 x $0.56, resulting in a $672.00 tax deduction.

What Records Do You Need?

To claim a deduction for mileage, the IRS requires taxpayers to maintain a contemporaneous log. This means recording your trips at or near the time they occur. Your documentation should include:

1. The date of the trip.
2. The starting point and destination.
3. The purpose of the trip (e.g., "Client meeting at XYZ Corp").
4. The total mileage for the trip.

Standard Mileage vs. Actual Expenses

Taxpayers generally have the choice between using the 2021 standard mileage rate or deducting actual expenses. Actual expenses include gas, oil, repairs, tires, insurance, registration fees, and depreciation. While the standard mileage rate is easier to calculate, if you have a vehicle with very high operating costs, the actual expense method might result in a larger deduction. However, once you use the actual expense method for a vehicle, you may be restricted from switching back to the standard mileage rate in future years for that specific car.

Frequently Asked Questions

Can I deduct commuting to my office?
Generally, no. The IRS considers the daily commute between your residence and your regular place of business as a personal expense, which is not deductible.

Did the rates change mid-year in 2021?
Unlike 2022, where rates increased significantly in July, the 2021 rates remained consistent from January 1 through December 31.

Does this apply to electric vehicles?
Yes, the IRS standard mileage rate applies to electric and hybrid-electric vehicles just as it does to traditional gasoline or diesel-powered vehicles.