Effective January 1, 2016 the standard mileage rates for business miles driven is 54 cents per mile. This is down from 57.5 cents in 2015.

Why Do Rates Change?

Standard mileage rates are based on an annual study of the fixed and variable costs of operating an automobile. Thus the rate fluctuates from year to year. Many business owners use this rate when calculating mileage deductions, but you do have the option to calculate actual costs instead. Actual cost must be used in some instances. Standard business mileage rates cannot be used for a fleet of vehicles (more than four vehicles simultaneously).

Visit the IRS Newsroom, or contact David@DEKEbookkeeping to learn more.