Standard mileage rates for 2015

The IRS announced the standard mileage rates for 2015. You can find the announcement in IR-2014-79.

Beginning on January 1, 2015, the standard mileage rates for the use of a car (also vans and pickups) will be:

  • 57.5 cents per mile for business miles driven
  • 23 cents per mile for medical or moving purposes
  • 14 cents per mile in service of charitable organizations

The business rate increased 1.5 cents from 2014 while the medical/moving rate dropped 0.5 cents. The charitable rate is based on Congressional statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Standard rates for the last few years:

8 Responses to Standard mileage rates for 2015

  1. Alex says:

    Jim – as an owner of a non-profit; what rate should we use when running errands for picking up donations, etc – business rate at 57.5/mile or one of the lower rates?

    • Jim Ulvog says:

      Hi Alex:

      I would caution you on the idea that a non-profit has an owner. That is not a healthy way to look at a charity.

      If the NPO is reimbursing its staff for conducting charity activities, it is my position that the charity could reimburse up to the amount which is referred to as the business mileage rate without generating a taxable reimburesment for staff.

      Jim

      • Alex says:

        Jim,

        It’s funny you mentioned that about the owner comment – I thought of that after I posted it, but couldn’t figure out how to edit it to say “founder of” :).

        Thanks for the info!

        • Jim Ulvog says:

          Hi Alex:

          That makes more sense. I figured that might be the case, or you are the manager. Others folks reading the blog might not know that though!

          Glad to help.

          Jim

  2. Adrienne Lombardi says:

    Can a company only reimburse employees at .40 a mile if the rate is 57.5 ?

    • Jim Ulvog says:

      Hi Adrienne:

      Yes. The rate described by the IRS is the maximum at which there are not tax complications. Any rate up to that amount for actual miles driven is acceptable to the IRS for an accountable expense reimbursement plan.

      Jim

  3. Chris Kyrios says:

    Charitable mileage rate. Is there a difference for a volunteer Board member vs. a plain volunteer? I’m a board member for a 501 (c)(3) and am required to attend two events per year. I’ve been using the lower charitable rate (0.14), but some of the other board members say that board members qualify for the regular (0.50 or more rate). Who is correct?

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