Standard Mileage Rates Will Go Down in 2016

Optional standard mileage rates for business use of a vehicle will go down in 2016.

For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be $0.54 per mile, compared with $0.575 per mile in 2015. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating a vehicle.

Driving for medical or moving purposes may be deducted at $0.19 per mile, which is four cents lower than for 2015. The rate for service to a charitable organization is unchanged at $0.14 per mile.

So, keep track of your mileage!