2021 Standard Mileage Rate
For 2021, the Standard Mileage Rate is 56¢ (Business use), 16¢ (Medical or moving) and 14¢ (Charitable service).
Effective 2021-01-01Source: Notice 2021-02 (IRS)Verified 2026-09-01
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Business use | 57.5¢ | 56¢ | -1.5¢ (-2.6%) |
| Medical or moving | 17¢ | 16¢ | -1¢ (-5.9%) |
| Charitable service | 14¢ | 14¢ | +0¢ (+0.0%) |
Who it applies to
Taxpayers who use the standard mileage rate to compute deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
What changed this year, and why
The IRS published the 2021 optional standard mileage rates for calculating deductible automobile operating costs.
Common questions
- What are the 2021 standard mileage rates?
- Effective January 1, 2021, the rate for business use is 56 cents per mile, the rate for medical or moving use is 16 cents per mile, and the rate for charitable service is 14 cents per mile.
- How do the 2021 rates compare with 2020?
- The business rate decreased from 57.5 cents to 56 cents per mile. The medical and moving rate decreased from 17 cents to 16 cents per mile. The charitable rate remained at 14 cents per mile.
What the rate covers, and what you may add to it
The standard mileage rate of 56¢ per mile for business use in 2021 covers the general operating costs of your vehicle, including depreciation, lease payments, maintenance, repairs, gasoline, oil, insurance, and registration fees. However, the rate does not include parking fees and tolls incurred for business purposes. You may deduct these additional expenses on top of the standard mileage rate. Business-related parking fees and tolls are separate deductible items. Note that parking fees you pay to park at your regular workplace are not deductible, as they are considered personal commuting expenses rather than business expenses. This means you can claim your 56¢ per mile for business driving plus any parking fees and tolls you pay while conducting business, but not the parking at your office.
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 (2021), Travel, Gift, and Car Expenses (IRS)
You must choose the standard rate in the car's first year
56
ust choose to use it in the first year the car is available for use in your
Publication 463 (2021), Travel, Gift, and Car Expenses (IRS)
Why a fleet cannot use the standard rate
If you own or lease five or more cars that are used for business at the same time, you cannot use the standard mileage rate for the business use of any of those vehicles. This rule applies to the entire fleet, not just some of the cars. When you have five or more business vehicles operating simultaneously, you must use the actual expense method for all of them. Actual expenses include depreciation, lease payments, registration fees, gas, insurance, repairs, oil, tires, tolls, parking fees, and other operating costs. You then divide these expenses between business and personal use based on the miles driven for each purpose. This rule prevents taxpayers with large vehicle fleets from using the simplified standard mileage rate, which is designed for smaller operations. The IRS requires the actual expense method for larger fleets because it more accurately reflects the costs of operating multiple vehicles. If you have fewer than five business cars, you can choose between the standard mileage rate and actual expenses for each vehicle.
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.
Publication 463 (2021), Travel, Gift, and Car Expenses (IRS)
The drive to work is never deductible mileage
The drive between your home and your main or regular place of work is never considered deductible business mileage, regardless of the circumstances. This applies to all forms of transportation, including driving your own car or taking public transit. Even if you perform work activities during your commute - such as making business phone calls or having business discussions with passengers who ride with you - the trip remains a personal commuting expense and is not deductible. The distance of your commute does not matter; whether you live five miles or fifty miles from work, those miles are personal. The IRS treats commuting as a personal expense because getting from home to your regular workplace is a cost you would incur regardless of your specific job or business. This rule prevents taxpayers from deducting what is essentially the cost of getting to work, which everyone must do. If you have a regular office and travel from there to other business locations, those trips are deductible, but the initial trip from home to that first work location is always personal.
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.
Publication 463 (2021), Travel, Gift, and Car Expenses (IRS)
Splitting a car between business and personal use
When you use a car for both business and personal purposes during the year, you cannot deduct all of your vehicle expenses. You must divide your expenses between business and personal use. The most common way to make this division is based on mileage. You determine the total miles driven during the year and the miles driven specifically for business purposes. The ratio of business miles to total miles determines what percentage of your car expenses you can deduct. If your records show that business miles represent a certain percentage of your total driving, you can deduct that same percentage of your car expenses. This rule applies whether you use the standard mileage rate of 56¢ per mile or if you choose to deduct actual expenses instead. Personal miles include commuting to your regular workplace, running personal errands, vacation driving, and any other non-business travel. Keep detailed records of your business miles, total miles, and the business purpose of each trip to support the percentage you claim on your return.
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 (2021), 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 2021-02 (IRS)
- Business use
The standard mileage rate for transportation or travel expenses is 56 cents per mile for all miles of business use (business standard mileage rate).
- Medical or moving
The standard mileage rate is 16 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).
- 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.