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Each year, the IRS announces standard rates that define how much per mile can be reimbursed tax -free or taken as a tax deduction. These rates vary annually because the cost of operating motor vehicles changes over time. The IRS allows tax-exempt reimbursements for several driving purposes. As of the time of publication, the rate for business use of vehicles was 51 cents per mile. The standard rate for moving or medical transportation mileage was 19 cents per mile and for driving related to charity work it was 14 cents per mile. Taxpayers who have qualifying mileage that is not reimbursed can use the standard rates to the amount figure their tax deduction, or they can keep track of actual operating costs.
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