2020 Standard Mileage Rate
For 2020, the Standard Mileage Rate figures are 57.5¢ (Business use), 14¢ (Charitable service) and 17¢ (Medical or moving).
Effective 2020-01-01Source: Notice 2020-05 (IRS)Verified 2026-09-04
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Business use | 58¢ | 57.5¢ | -0.5¢ (-0.9%) |
| Charitable service | 14¢ | 14¢ | +0¢ (+0.0%) |
| Medical or moving | 20¢ | 17¢ | -3¢ (-15.0%) |
Who it applies to
Taxpayers who use their personal automobile for business, charitable, medical, or moving purposes and choose to use the standard mileage rate instead of actual expenses.
What changed this year, and why
The IRS published the 2020 standard mileage rates used to calculate deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Common questions
- What is the business mileage rate for 2020?
- The standard mileage rate for business use in 2020 is 57.5 cents per mile.
- What is the charitable mileage rate for 2020?
- The standard mileage rate for charitable service in 2020 is 14 cents per mile. This rate is set by statute under section 170.
- What is the medical and moving mileage rate for 2020?
- The standard mileage rate for medical or moving use in 2020 is 17 cents per mile.
What the rate covers, and what you may add to it
The 2020 standard mileage rate of 57.5¢ per mile for business use is not an all-inclusive figure. On top of that per-mile allowance, a taxpayer may also deduct any parking fees and tolls that are directly tied to business travel. So if you drive to a client's office and pay to park in a garage, or you pass through a toll plaza on a business errand, those out-of-pocket costs are added to the mileage deduction rather than being folded into the 57.5¢ rate. The rule does draw one important line: parking fees you pay at your regular workplace are classified as nondeductible commuting expenses, not as a supplement to the mileage rate. Only parking fees and tolls incurred while away from your normal work site on business business qualify for the add-on deduction. Gasoline, maintenance, insurance, registration, and depreciation are all deemed to be absorbed by the standard rate and cannot be claimed on top of it.
Parking fees and tolls. In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. (Park- ing fees you pay to park your car at your place of work are nondeductible commuting expen- ses.)
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
You must choose the standard rate in the car's first year
The IRS requires a taxpayer to commit to the standard mileage rate at the very start of a car's business life. If you own a vehicle and want to use the 57.5¢ per business mile rate for 2020, you must elect it in the first year the car is available for use in your business. Missing that window by choosing actual expenses in year one locks out the standard rate for the life of that vehicle. Once the standard rate is properly elected in that first year, the taxpayer gains flexibility: in every subsequent year they may switch back and forth between the standard mileage rate and actual expenses as they see fit. A parallel rule applies to leased vehicles - the standard rate must be used for the entire lease period. The election itself must be made by the due date (including extensions) of the tax return, and once made it cannot be revoked for that year.
Choosing the standard mileage rate. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your busi- ness. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
Why a fleet cannot use the standard rate
The standard mileage rate is designed as a simplification for taxpayers with a modest number of business vehicles. The IRS draws the line at five cars: if you own or lease five or more cars that are used for business at the same time, you are barred from using the standard mileage rate for the business use of any of those cars. The prohibition is fleet-wide - not a single vehicle in the group qualifies for the per-mile rate. The alternative in this situation is the actual-expenses method: you may deduct the actual costs of operating each car in your business, including depreciation, fuel, insurance, repairs, and registration. Taxpayers who hover near the threshold should count carefully, because the moment a sixth business vehicle joins the fleet every one of the five-plus vehicles loses eligibility for the 57.5¢ per-mile rate and must be tracked on an actual-cost basis instead.
Five or more cars. If you own or lease five or more cars that are used for business at the same time, you can’t use the standard mileage rate for the business use of any car. However, you may be able to deduct your actual expen- ses for operating each of the cars in your busi- ness.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
The drive to work is never deductible mileage
The drive from home to your regular workplace is treated by the tax code as a personal expense, no exceptions. You cannot deduct the cost of any mode of transport - bus, trolley, subway, taxi, or your own car - when it is used to travel between your home and your main or regular place of work. The IRS labels these outlays "personal commuting expenses" and makes clear that distance is irrelevant: even if your home is many miles from your regular job site, the trip remains nondeductible. Working during the commute does not change the character of the trip either. Making business phone calls on a hands-free device or discussing work with a passenger who rides along to the office does not convert a personal commute into a business trip. Parking fees at your regular workplace fall into the same nondeductible category. Only trips to locations that are not your regular place of work - such as a client's office or a temporary job site - can generate deductible mileage at the 57.5¢ business rate.
Commuting expenses. You can’t deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You can’t de- duct commuting expenses no matter how far your home is from your regular place of work. You can’t deduct commuting expenses even if you work during the commuting trip.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
Splitting a car between business and personal use
A car used for both business and personal purposes must have its expenses split between the two uses, and the IRS allows you to make that split based on miles driven. You total the miles driven for business during the year and the miles driven for all purposes, and the business fraction determines what share of the car's operating costs you may treat as a business expense. The same proportional logic applies when using the standard mileage rate: you multiply the business miles only by the rate of 57.5¢ per mile, and the personal miles produce no deduction at all. Accurate mileage records are therefore essential. You need a log that identifies each trip's date, destination, business purpose, and miles so that the business total can be substantiated. Without that division between business and personal use, the entire deduction can be disallowed. The rule applies whether you own or lease the vehicle, and it covers every type of expense - fuel, insurance, repairs, registration, and depreciation - not just the per-mile calculation.
Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between busi- ness and personal use. You can divide your ex- pense based on the miles driven for each pur- pose.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
Your mileage log has to be kept close to when you drove, not written up later
The IRS requires that the elements of a deductible expense - such as the amount, time, place, and business purpose - be recorded in an account book, diary, or similar record at or near the time the expense occurs. For a sales representative who drives a regular route, this means recording the date of each trip and the total miles driven during the tax year close to when the trips happen, rather than waiting until the end of the year to reconstruct the numbers from memory. If confidential information cannot be placed in the regular record, it must still be documented elsewhere at or near the time of the expense and kept available to prove the deduction.
However, you do have to record the infor- mation elsewhere at or near the time of the expense and have it available to fully prove that element of the expense.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
How much of the standard rate is depreciation, and the FAVR maximum vehicle cost
For 2020, the IRS treats 27 cents per mile of the business standard mileage rate as the depreciation portion. When a taxpayer uses the standard mileage rate to deduct business driving costs, this 27-cent component reduces the tax basis of the vehicle, reflecting the car’s wear and loss of value over the miles driven. The same notice also caps the vehicle cost used to compute a fixed and variable rate (FAVR) allowance: for purposes of a FAVR plan, the standard automobile cost may not exceed $50,400 for automobiles, including trucks and vans. The FAVR cap applies regardless of what the employee actually paid for the car; any value above $50,400 is ignored when the employer calculates the fixed and variable rate allowance. Taxpayers who use the standard mileage rate rather than a FAVR plan do not apply the $50,400 limit, but they do apply the 27-cent-per-mile basis reduction each year they claim business miles at the 2020 rate of 57.5 cents per mile.
For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 24 cents per mile for 2016, 25 cents per mile for 2017, 25 cents per mile for 2018, 26 cents per mile for 2019, and 27 cents per mile for 2020. See section 4.04 of Rev. Proc. 2019-46. SECTION 5. MAXIMUM STANDARD AUTOMOBILE COST For purposes of computing the allowance under a FAVR plan, the standard automobile cost may not exceed $50,400 for automobiles (including trucks and vans).
Notice 2020-05 (IRS)
A guessed mileage figure is not deductible
The IRS does not allow taxpayers to deduct business mileage based on guesses or approximations. You must be able to prove the actual number of miles you drove for business purposes with adequate records or sufficient evidence. If you do not have complete records, you must provide your own written or oral statement containing specific information about the miles driven, along with other supporting evidence that is sufficient to establish the amount. Simply estimating your business mileage is not acceptable - the deduction requires documentation of the actual business miles driven.
You can’t deduct amounts that you ap- proximate or estimate.
Publication 463 (2020), Travel, Gift, and Car Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2020-05 (IRS)
- Business use
The standard mileage rate for transportation or travel expenses is 57.5 cents per mile for all miles of business use (business standard mileage rate).
- Charitable service
The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170.
- Medical or moving
The standard mileage rate is 17 cents per mile for use of an automobile: (1) for medical care described in § 213; or (2) as part of a move for which the expenses are deductible under § 217(g).