Cents-Per-Mile Rate

Definition

The cents-per-mile rate is the specific dollar amount per mile that the IRS designates for calculating vehicle-related tax deductions under the standard mileage method. Separate rates exist for business use, medical travel, and charitable driving, and each may be updated annually or mid-year by the IRS. Taxpayers multiply their total qualifying miles driven in each rate period by the applicable cents-per-mile figure to arrive at their deductible amount.