Effective January 1, 2021, the optional IRS standard mileage rates for use of a car, van, pickup, or panel truck are as follows:
| 56¢ (a decrease of 1.5¢ from 2020) | Per mile – for business use |
| 16¢ (a decrease of 1¢ from 2020) | Per mile – for medical or moving purposes |
| 14¢ (no change from 2020) | Per mile – in service of charitable organizations |
The standard mileage rates for charitable organizations remained unchanged from 2020, with a 1 cent decrease per mile for medical or moving purposes and a 1.5 cent decrease per mile for business use. The difference between the optional standard mileage rate for business use versus medical or moving purposes is that, while the medical and moving rate takes into account variable costs, the business rate is calculated from an annual study of fixed and variable costs.
Please refer to the IRS News Release published on December 22, 2020, for additional details. See how the 2021 optional standard mileage differs from the 2020 Optional Standard Mileage Rate.
