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IRS

IRS Mileage Rate 2020

The Internal Revenue Service released the standard mileage rates that will take effect on January 1, 2020 in the IRS Notice 2020-05. There isn’t any increase in the mileage rates for 2020. It is quite the contrary to actually. The mileage rates for both business use and medical/moving purposes have been downed.

Starting from January 1, 2020, here is how much the mileage rate for each use is going to be.

  • Business use: 57.5 cents per mile driven
    • It’s downed half a cent from 2019
  • Medical or moving purposes: 17 cents per mile driven
    • It’s downed three cents from 2019
  • Charitable organizations: 14 cents per mile driven
    • The same amount as last year.

There have been no further announcements on why the mileage rates have been reduced. Given that the mileage rate for business was upped 3.5 cents from 2018 to 2019 and the rate for medical/moving was upped 2 cents from 2018 to 2019, it isn’t that big of a deal.

When all things that affect the mileage rate put together (the inflation rate and the changes to the cost of living) everything is still at a balanced point.

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Deborah Ann

Deborah writes everything from federal tax law to local governments. Her writings cover a broad range of government topics. With a little bit of seriousness to the words, everything is simplified to Futufan readers.

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