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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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Federal Mileage Rate

What Is the Federal Mileage Rate?

The federal mileage rate is the amount you can deduct from your federal income taxes for the costs of operating your car, van, pickup, or panel truck for qualified business, charitable, medical, or moving purposes. The Internal Revenue Service (IRS) determines this rate every year, adjusting for inflation and other variables involved in owning and operating a vehicle.

A taxpayer can decide to use either the federal mileage rate when making deductions for qualified expenses, or they can calculate expenses themselves. 

How Much Is the Federal Mileage Rate?

For 2020, the federal mileage reimbursement rates are:

  • 57.5 cents per mile for business use

  • 17 cents per mile for medical or moving purposes

  • 14 cents per mile for charity work

For more information on the federal mileage rate, including who qualifies for it and how to calculate it, visit our entry on the federal mileage reimbursement.