2021 Mileage Reimbursement Calculator

Published

2021 mileage reimbursement calculator is based on just announced optional standard mileage rates for calculating the deductible costs of operating a motor vehicle for business, charity or for medical purposes. The most important point to note is that the IRS has reduced the mileage reimbursement rates for business and medical purposes for the year beginning January 1st, 2021

2021 Mileage Reimbursement Rates

IRS fixes the standard mileage rate for business on the basis of an annual study of the fixed and variable costs of operating an automobile, whereas the mileage rates for medical and moving purposes is based on the variable costs. So, the new standard mileage reimbursement rates for the use of a car (also vans, pickups or panel trucks) from on January 1, 2021, will be:

  • 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
  • 16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and
  • 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.

2021 Mileage Reimbursement Calculator

Household Employer Tax Deduction Calculator

We earlier published 2010 mileage reimbursement calculator that can be used to compute the gas reimbursement for 2019 as well.

Where can I find the official IRS mileage rates?

Notice 2021-02 PDF, should be referred. It contains the optional 2021 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. .

By Prashant Thakur

Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website http://taxworry.com. He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.