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IRS Announces Lower 2016 Standard Mileage Reimbursement Rates

The Internal Revenue Service (IRS) has issued the 2016 optional standard mileage rates and beginning on January 1, 2016, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 54 cents per mile for business miles driven (down from 57.5 cents in 2015)

The dip in mileage rates for 2016 reflects lower gas prices nationwide. According to AAA, U.S. drivers are paying the lowest average price for regular unleaded gasoline since 2009 .  On average, taxpayers are paying 79 cents per gallon less than they did in 2015.

The optional standard mileage rate is used to easily calculate the amount of a deductible business and moving/relocation expense (miles driven times the applicable rate) with the new rate going into effect at the beginning of 2016 for the 2016 calendar year.

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