Beginning Jan. 1, 2016, the standard mileage rates for use of an automobile will be:
- 54 cents per mile for business miles driven, down from 57.3 cents
- 19 cents per mile driven in medical or moving purposes, down from 23 cents
- 14 cents per mile driven in service of charitable organizations, which remains unchanged from 2015
For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the standard automobile cost may not exceed $28,000 ($31,000 for trucks and vans).
The updated rates are effective for deductible transportation expenses paid or incurred on or after the effective date; and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after Jan. 1, 2016.