New Standard Mileage Rate for 2016

Did you know that the standard mileage rate for 2016 has changed from 2015?

Info provided by: IRS.gov

Generally the standard mileage rate only goes up as the cost of operating a vehicle increases (inflation, cost of gasoline, etc.) but for 2016 the expense amount has actually been reduced from 2015.

As you can see above there is a 3.5 cent per mile difference for business travel and a 4 cent per mile reduction for medical travel while the charitable travel rate has stayed the same from a year ago. The new mileage rates went into effect on January 1, 2016.

You might be wondering why the federal reimbursement rate is now lower. The answer is simple – the price of gas has dropped significantly, which is one of the larger inputs into the standard mileage rate. With the national average for gas sitting at $1.99, taxpayers are paying 79 cents per gallon lower than in 2015 (*1).

So, make sure you are using the correct standard mileage rate this year and keep tracking all those miles — with the rate going down this year it’s even more important than ever that you track them all.

Team Everlance