The IRS announced an increase in the standard mileage rate to 57.5 cents per mile effective January 1, 2015. The 2014 rate was 56 cents per mile. According to the IRS notice, The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil.
Other applicable rates for 2015 are:
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations
With gas prices dropping almost $1 per gallon in the last year, it will be interesting to see if the IRS makes any mid-year adjustment to the increased standard rate. Typically the rate is adjusted only annually, but in 2011 IRS made a mid-year adjustment increasing the rate because of increasing gas prices during the year. For a look back at the history of standard rate changes, see http://www.irs.gov/Tax-Professionals/Standard-Mileage-Rates.
According to the most recent CAI Policies and Benefits Survey, the average mileage reimbursement for 2014 was 53 cents per mile (333 companies reporting).
To view the full IRS Notice, see http://www.irs.gov/pub/irs-drop/n-14-79.pdf.