The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2024, will be 67 cents per mile, up 1.5 cents from 65.5 cents per mile for 2023.

Vehicles Put Into Service in 2024

For vehicles put into service in 2024, the cents-per-mile valuation method and the fleet-average valuation rule can be used only if the vehicle does not have a fair market value of more than $62,000 ($60,800 in 2023).

Make Sure to Use the Correct Rate

Because of the 1.5 cent increase in the business standard mileage rate, employers reimbursing employees at the 2023 rate need to be mindful of the rate change. Employers should make sure they change to the 2024 rate for all affected travel on or after January 1, 2024. And remember that business miles driven in December 2023 that show up on an employee’s expense report in 2024 are governed by the rules applicable to the corresponding 2023 mileage rate.

Courtesy of PayrollOrg