IRS Mileage Rates for 2021-2022: Business, Moving, Charity, Medical Mileage Rates

For 2021, they're $0.56 per mile for business, $0.14 per mile for charity and $0.16 per mile for moving or medical.
Feb 11, 2022
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In 2021, the standard IRS mileage rate is 56 cents per mile for business miles driven, 16 cents per mile for moving or medical purposes and 14 cents per mile for charity miles driven.

In 2022, the mileage rates increase for business and medical or moving miles (58.5 cents and 18 cents, respectively), while the charity mile rate remains the same (14 cents).

You must meet certain requirements and itemize your taxes to deduct mileage. If you qualify to deduct mileage, the IRS mileage rate is a way to calculate how much to reduce your taxable income.

What are the IRS mileage rates for 2021 and 2022?

2021 tax year

2022 tax year

Business mileage rate

56 cents / mile.

58.5 cents / mile.

Medical and moving mileage rate

16 cents / mile.

18 cents / mile.

Charitable mileage rate

14 cents / mile.

14 cents / mile.

Your tax deduction depends on how you use your vehicle. If you’re self-employed or work as a contractor, you might be able to deduct the cost of the use of your car for business purposes. Commuting to work is generally not deductible mileage.

How to calculate a mileage deduction

There are two options for calculating the deduction for the business use of your vehicle.

1. Standard mileage deduction

This is the most straightforward way of calculating your driving expense: simply multiply the number of business miles by the IRS mileage rate. However, you’ll need keep a record of your business-related mileage.

The rules for business mileage deductions can be complex, especially if you use lots of vehicles for business, just got a new vehicle or leased the vehicle. The IRS website has more details.

2. Actual expenses

If you don’t want to track your mileage, you could track and deduct the actual expenses you incur while using your vehicle for business purposes. These expenses may include:

  • Depreciation.

  • Licenses.

  • Lease payments.

  • Registration fees.

  • Gas and oil.

  • Insurance.

  • Repairs.

  • Garage rent.

  • Tires.

  • Tolls.

  • Parking fees.

IRS mileage rate deduction for volunteering and charitable activities

If you used your car to help a charity or to go somewhere to volunteer, the mileage can be deductible. You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to the use of your car in giving services to a charitable organization. Also, you can't deduct repair and maintenance costs, depreciation, registration fees, tires or insurance.

IRS mileage rate deduction for moving

Only active duty members of the military can deduct mileage related to moving. The move has to be related to a permanent change of station.

IRS mileage rate deduction for medical situations

If you used your car for medical reasons, you may be able to deduct the mileage. "Medical reasons" include:

  • Driving to the doctor, hospital or other medical facility.

  • Driving a child or other person who needs medical care to receive medical care.

  • Driving to see a mentally ill dependent if the visits are recommended as part of treatment.

You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to the use of your car for medical purposes. Also, you can't deduct repair and maintenance costs, depreciation or insurance.

Mileage isn’t the only transportation cost you might be able to deduct as a medical expense. IRS Publication 502 has the details. Here’s a big caveat: In general, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income.

How to claim tax deductions using IRS mileage rates

If you're deducting mileage for moving, medical or charity purposes, you'll need to itemize on your tax return in order to claim the tax deduction for mileage. Itemizing means you’ll need to set aside extra time when preparing your returns to fill out the big enchilada of tax forms: the Form 1040 and Schedule A, as well as supporting schedules that feed into those forms.

If you're self-employed, you’ll claim your mileage deduction as a business expense on Schedule C.

If you file your taxes online, the software will ask about your mileage during the interview process and calculate the deduction.

Tracking your mileage

This is important because if you’re audited, you may need to substantiate your deduction by showing a log of the miles you drove.

There are lots of ways to keep track of your mileage. Something as simple as keeping a pen and paper in the glove compartment can suffice, but a quick trip to Google or your phone's app store will reveal a variety of tools that can streamline things.

  • Federal: $24.95 to $64.95. Free version available for simple returns only.

  • State: $29.95 to $44.95.

  • All filers get access to Xpert Assist for free until April 7.

Promotion: NerdWallet users get 25% off federal and state filing costs.

  • Federal: $39 to $119. Free version available for simple returns only.

  • State: $49 per state.

  • TurboTax Live packages offer review with a tax expert.

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  • Federal: $29.99 to $84.99. Free version available for simple returns only.

  • State: $36.99 per state.

  • Online Assist add-on gets you on-demand tax help.

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