closeup of a speedometer on a car dash, milage rates 2023

New Year, New Changes to Mileage Rates

As we enter the year 2024, we want to share with you the mileage rate changes. This year there are some rate increases and some rate decreases. Let’s check it out to see what has changed.

New mileage rates for 2024:

Business Use: The new rate is 67 cents per mile. This is up 1.5 cents from 2023.

Medical or Active-Duty Members of Armed Forces Moving Use: The new rate is 21 cents. This rate has decreased by 1 cent.

Charitable Use: This rate remains the same at 14 cents per mile.

As we had mentioned that last year, there are few things to note about these rates:

  • All of the rates apply to all types of vehicles: electric, hybrid-electric, gasoline, and diesel-powered vehicles.
  • Through the Tax Cuts and Job Acts, most taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
  • Only Active-Duty Members of the Armed Forces who are under orders to a permanent change of station qualify for the moving mileage deduction.

As mentioned in our previous mileage rate increase blogs, below is a reminder of what mileage qualifies:

Business Use

Driving to and from work does not qualify for business use mileage. However, if you are required to use your own vehicle to drive to customers or to different locations for meetings, those miles would qualify.

Medical Use

If you have a lot of medical issues, you may benefit from keeping track of your medical-related mileage. This would include driving to get to doctor and dentist appointments, picking up prescriptions, and getting to therapy sessions.

Charitable Use

If you volunteer for a charity, you can deduct the miles you drive to get to and from the organization’s location. Besides deducting mileage, you can also deduct any parking or tolls that you may encounter during the drive. As a reminder, in order for the mileage to be deductible, the organization must be registered as a tax-exempt organization. Find out if the organization you volunteer at qualifies.

Also, with the new year comes the thoughts of tax season. As you begin to acquire your tax information, be sure to call and schedule an appointment. Be proactive and get on our schedule early this year, so you have no delays in receiving your tax refund!

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