The IRS has announced that the optional standard mileage rate for business use of an automobile will increase by 1.5 cents starting January 1, 2024, to 67 cents per mile. The depreciation element increases to 30 cents. The rates apply to electric, hybrid, and gasoline-powered vehicles.
The mileage rate for medical/moving purposes decreases to 21 cents per mile (from 22 cents per mile in 2023).
The mileage rate for service to charitable organizations remains at 14 cents per mile. The charitable mileage rate is a statutory rate and not indexed.
The maximum value of an employer-provided vehicle first made available in 2024 is $62,000 (up from $60,800 in 2023). This amount applies for purposes of fleet-average valuation and cents-per-mile valuation calculations for automobiles, trucks, and vans.